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Waste Management Stocks Q4 Earnings on Feb 16: RSG, WM, ECOL

The earnings season is well past its peak with 385 S&P companies having already reported results till Feb 10. The earnings picture that has emerged so far has hitherto confirmed that the overall results for fourth-quarter 2016 are likely to be the best in about two years.

Total earnings for these 385 companies are up 6.1% on 4.6% higher revenues, with 69% beating earnings estimates and 54.7% surpassing top-line expectations. Based on the hitherto observed pattern, the quarter is anticipated to register high single-digit percentage growth on a year-over-year basis.

Per the latest Earnings Preview , overall fourth quarter's earnings for all the S&P 500 companies are expected to be up 7.5% year over year on 3.9% growth in revenues. This represents a healthy improvement from the prior quarter that ended the earnings recession of five consecutive quarters for the benchmark index. The relative improvement in the quarterly performance is largely due to a turnaround in the economy, improved job market scenario and rising oil prices . Experts widely believe that earnings growth is likely to be in double digits in 2017 and beyond.

For the quarter as a whole, about four of the 16 Zacks sectors are expected to witness an earnings decline, with Autos, Conglomerates and Transportation being the biggest drag.

The Business Services sector is looking impressive this time. For the sector, earnings are expected to grow 10.8% year over year, while sales are touted to rise 7.5% driven by higher capital investment in the infrastructure market and improved economic and labor market conditions.

Let's have a sneak peek at three major Waste Management stocks scheduled to report fourth-quarter earnings on Feb 16 to see how things are shaping up for the upcoming results.

Republic Services, Inc.RSG is slated to report earnings after the closing bell. The company is currently focusing on increasing its operational efficiency by converting its fleet to compressed natural gas collection vehicles and modifying rear-loading trucks to automated-side loaders, which will reduce costs and improve profitability. The company is also realigning its field support functions by combining two organizational layers, and expects these initiatives to contribute approximately $25 million of annual cost savings from 2018. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for a likely earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here . For the impending quarter, Republic Services has an Earnings ESP of 0.00% and Zacks Rank #2, making a surprise prediction difficult. (Read more: What's in Store for Republic Services in Q4 Earnings? )

Republic Services, Inc. Price and EPS Surprise

Republic Services, Inc. Price and EPS Surprise | Republic Services, Inc. Quote

Waste Management, Inc.WM is scheduled to report results before the opening bell. The company is refocusing on its core business activities to instill price and cost discipline for better margins. It is working on improving customer retention by providing better services and higher value solutions. The company has also taken prudent steps to divest non-core operations and focus on high-growth areas that will generate higher cash flows and boost the top line. We cannot conclusively predict earnings beat this quarter as the company has a Zacks Rank #3 and an ESP of 0.00%. (Read more: Can Waste Management Retain its Earnings Streak in Q4? )

Waste Management, Inc. Price and EPS Surprise

Waste Management, Inc. Price and EPS Surprise | Waste Management, Inc. Quote

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

US Ecology, Inc.ECOL is set to release earnings results after the market closes . The company is streamlining its business for better long-term growth opportunities. In order to focus more on its core business activities, the company has decided to divest its non-core assets. Over the trailing four quarters it managed to beat estimate only once, with an average negative surprise of 9.7%. For the quarter to be reported, we are uncertain of an earnings beat as the company has an Earnings ESP of 0.00% and a Zacks Rank #2.

US Ecology, Inc. Price and EPS Surprise

US Ecology, Inc. Price and EPS Surprise | US Ecology, Inc. Quote

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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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