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Republic Services (RSG) Q4 Earnings: What's in Store?

Premier waste management firm Republic Services, Inc . RSG is scheduled to report its fourth-quarter 2015 results after the closing bell on Feb 11. In the last reported quarter, quarterly earnings were in line with the Zacks Consensus Estimate. Let's see how things are shaping up for this announcement.

Factors to Consider

Republic Services is rationalizing its cost structure, improving the revenue quality and seeking growth through profitable investment opportunities. The company is increasing its operational efficiency by switching over to compressed natural gas collection vehicles and swapping rear-loading trucks with automated-side loaders, which will reduce costs and improve profitability.

RSG recently expanded its compressed natural gas (CNG) fleet in Gardena, CA area by adding 11 solid waste collection trucks. The natural gas vehicles replaced diesel-powered trucks in the region to bring the tally of cleaner and environment-friendly vehicles in Gardena to 176.

Republic Services is committed to its long-term strategy, which involves the maintenance of a healthy cash flow and a disciplined approach to cash utilization. The company has strong underlying fundamentals and is set to achieve consistent earnings growth and create shareholder value.

However, Republic Services' recycling operations process certain recyclable materials for sale, including fibers, aluminum and glass, all of which are subject to significant market price fluctuations.

Earnings Whispers

Our proven model does not conclusively show that Republic Services is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) and #3 (Hold) for this to happen. This is not the case here as you will see below:

Zacks ESP : Earnings ESP for Republic Services is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 49 cents.

Zacks Rank : Republic Services currently carries a Zacks Rank #4, which when combined with a 0.00% ESP make surprise prediction difficult.

Note that stocks with a Zacks Rank #1, 2 and 3 have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks That Warrant a Look

Here are some companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat in the imminent future.

ABM Industries Incorporated. ABM has an Earnings ESP of +38.46% and carries a Zacks Rank #3

Frontline Ltd. FRO has an Earnings ESP of +34.69% and holds a Zacks Rank #2.

Gener8 Maritime Inc. GNRT has an Earnings ESP of +1.52% and holds a Zacks Rank #1.

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FRONTLINE LTD (FRO): Free Stock Analysis Report

ABM INDUSTRIES (ABM): Free Stock Analysis Report

REPUBLIC SVCS (RSG): Free Stock Analysis Report

GENER8 MARITIME (GNRT): Free Stock Analysis Report

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


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

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