Republic Services (RSG) Q4 Earnings & Revenues Beat Estimates

Republic Services, Inc. RSG reported impressive fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate.

RSG’s earnings per share (EPS), excluding 2 cents from non-recurring items, of $1.41 beat the Zacks Consensus Estimate by 10.2% and increased 24.8% year over year. Revenues of $3.8 billion surpassed the consensus mark by 2.9% and increased 8.6% year over year.

The company’s shares have gained 43.1% in the trailing 12 months, outperforming the 30.8% rally of the industry it belongs to.

Republic Services, Inc. Price, Consensus and EPS Surprise


Republic Services, Inc. Price, Consensus and EPS Surprise

Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote

Segmental Revenues

Revenues from Collection totaled $2.6 billion, up 9.4% year over year, beating our estimate of $2.5 billion.

Revenues (net) in the Transfer and Landfill segments were $188.2 million and $419.6 million, rising 5.3% and 9.8% year over year, respectively. The Transfer segment’s revenues missed our estimate of $191 million, whereas Landfill revenues surpassed our estimate of $415.1 million. The uptick in Landfill revenues was primarily driven by special waste revenues.

The Other segment’s revenues of $175.4 million increased 23% year over year and beat our estimate of $154 million. Environmental solutions’ revenues (net) of $413.4 million decreased 1% year over year but beat our estimate of $412.7 million.

Operating Results

Adjusted EBITDA for the quarter was $1.1 billion, marking an 18.7% increase from the year-ago quarter and exceeding our estimate of $1 billion. The adjusted EBITDA margin of 29.9% rose from the prior-year quarter by 260 basis points, beating our estimate of 27.4%.

Balance Sheet and Cash Flow

Republic Services exited fourth-quarter 2023 with cash and cash equivalents of $140 million compared with $157.5 million at the end of third-quarter 2023. Long-term debt (net of current maturities) was $11.9 billion compared with $11 billion at the end of the third-quarter 2023.

RSG generated $898.5 million in cash from operating activities in the reported quarter. The adjusted free cash flow was $157.7 million. Capital expenditure in the reported quarter was $547.9 million.

2024 Guidance

For 2024, the company expects revenues of $16.1-$16.2 billion, whereas the Zacks Consensus Estimate is pegged at $15.8 billion. Adjusted EPS is anticipated to be $5.94-$6. The mid-point of the company’s guided range ($5.97) is higher than the Zacks Consensus Estimate of $5.96.

Adjusted EBITDA is anticipated to be $4.82-$4.87 billion. The adjusted free cash flow is likely to be $2.1-$2.15 billion.

Currently, Republic Services carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

TransUnion TRU reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

TRU’s EPS of 70 cents per share (adjusting 67 cents from non-recurring items) surpassed the consensus mark by 14.8% in the fourth quarter and was flat on a year-over-year basis. Total revenues of $954.3 million surpassed the consensus mark by 3% and increased 5.8% year over year on a reported basis. Revenues rose 5% on a constant-currency basis, mainly driven by strength in the international markets.

Envestnet, Inc. ENV reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.

ENV’s EPS, excluding $4 from non-recurring items, was 65 cents in the fourth quarter, surpassing the consensus estimate by 22.6%. The bottom line increased 44.4% from the year-ago quarter. Total revenues of $317.6 million beat the consensus estimate by 1.7%. The top line improved 8.5% on a year-over-year basis.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Republic Services, Inc. (RSG) : Free Stock Analysis Report

Envestnet, Inc (ENV) : Free Stock Analysis Report

TransUnion (TRU) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.