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Republic Services, Inc. (RSG), with a market cap of $61.4 billion, is a leading provider in the environmental services sector, specializing in non-hazardous solid waste collection, recycling, and energy solutions. The Phoenix, Arizona-based company is expected to announce its fiscal Q2 earnings results after the market closes on Wednesday, July 24.
Ahead of this event, analysts are expecting RSG to report a profit of $1.52 per share, up 7.8% from $1.41 per share in the year-ago quarter. The company has consistently surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. Increased revenues from collection services and environmental solutions, alongside enhanced operational efficiencies, helped the company surpass the consensus EPS estimate by 5.8% in the most recent quarter.
For fiscal 2024, analysts expect RSG to report EPS of $6.05, up 7.8% from $5.61 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 10.4% annually to $6.68.
RSG has outpaced the broader markets in 2024, with shares up 18.8% on a YTD basis compared to the S&P 500 Index's ($SPX) 16.9% gain and the S&P 500 Industrial Sector SPDR's (XLI) 6.9% increase over the same period.
Shares of RSG initially declined after its Q4 earnings report on Feb. 27 due to cautious investor sentiment but later recovered following the company's strong full-year revenue forecast for 2024, which exceeded analysts' expectations and highlighted its robust pricing strategy amidst ongoing demand for waste management services.
However, the stock dipped following its Q1 earnings results on Apr. 30 due to concerns over slight revenue misses in key segments despite beating earnings expectations and showing overall revenue growth.
Analysts' consensus rating on Republic Services stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 19 analysts covering the stock, seven recommend a "Strong Buy," one has a "Moderate Buy" rating, and 11 give a "Hold" rating. The average analyst price target for RSG is $202.11, suggesting a modest potential upside of just 3.3% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
