Trash collector and recyclerRepublic Services (
) rose sharply Friday after reporting better-than-expected
earnings and raising its dividend.
The U.S. No. 2 trash hauler afterWaste Management (
), Republic reported earnings of 51 cents a share vs. estimates
of 49 cents. That's a 19% increase from a year ago. Revenue was
$2.23 billion, a 5% increase. The company attributed the earnings
boost to productivity gains and the revenue to more volume
The company serves 13 million customers nationwide, including
residences, businesses, industries and municipalities.
Republic was incorporated in 1998 and grew through
acquisitions and mergers as well as organically. The stock also
came public in 1998. The stock lost more than half its value in
the 2008 financial crisis, but has worked its way back to just
above its former high. The last few years has seen spotty EPS
growth and mostly a sideways stock. Revenue growth has been low
The Pollution Control industry group is ranked No. 127 out of
197 industry groups. Republic is ranked 8th out of 33 by
The company also raised its quarterly dividend from 26 to 28
cents. That works out to an annual yield of 3%. The dividend will
be paid Oct. 15 to shareholders of record Oct. 1. The company has
a history of raising its dividend. It was paying 6 cents in
The company has a five-year annualized EPS growth rate of 7%
and an Earnings Stability Factor of 6 on a 0 to 99 scale, where
low numbers correspond to stable earnings growth.
Analysts expect a 4% decline in earnings in the next report
and a 1% decline overall for the year. They expect 10% growth in
Investment firm Cascade Investment, controlled by Bill Gates,
bought 1.4 million shares of Republic stock in June.