Republic Services Earnings Preview: What to Expect

Core Insights - Republic Services, Inc. is the second largest provider of non-hazardous solid waste services in the U.S. with a market cap of $69 billion [1] - The company is expected to report a slight decline in adjusted profit for Q3, with an EPS of $1.76, down 2.8% from the previous year [2] - Analysts project a positive growth trajectory for fiscal years 2025 and 2026, with adjusted EPS expected to rise to $6.84 and $7.45 respectively [3] Financial Performance - Republic Services' stock has increased by 6.2% over the past 52 weeks, underperforming compared to the Industrial Select Sector SPDR Fund's 8.9% and the S&P 500 Index's 13.5% [4] - In Q2, the company reported a 4.6% year-over-year revenue growth to $4.2 billion, driven by 3.1% organic revenue growth and 1.5% from acquisitions, although it missed Street expectations by 75 basis points [5] - The adjusted EPS for Q2 was $1.77, reflecting a 9.9% year-over-year increase, surpassing consensus estimates by 1.1% [5] - Operating cash flows for Q2 increased by 11.7% year-over-year to $2.1 billion [5] Analyst Sentiment - Analysts maintain a consensus "Moderate Buy" rating for Republic Services, with 12 "Strong Buys," 2 "Moderate Buys," and 10 "Holds" among 24 analysts [6] - The mean price target for RSG is $262, indicating a potential upside of 20.1% from current levels [6]