- RSG Q1 Deep Dive: Pricing, Digital Investments, and M&A Offset Flat Volumes
May 12, 2026
Waste management company Republic Services (NYSE:RSG) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 2.6% year on year to $4.11 billion. Its non-GAAP profit of $1.70 per share was 3.8% above analysts’ consensus estimates.
Is now the time to buy RSG? Find out in our full research report (it’s free).
Republic Services (RSG) Q1 CY2026 Highlights:
Revenue: $4.11 billion vs analyst estimates of $4.10 billion (2.6% year-on-year growth, in line) Adjusted EPS: $1.70 vs analyst estimates of $1.64 (3.8% beat) Adjusted EBITDA: $1.32 billion vs analyst estimates of $1.30 billion (32.1% margin, 1.6% beat) Operating Margin: 20.2%, in line with the same quarter last year Sales Volumes were flat year on year (1.2% in the same quarter last year) Market Capitalization: $62.27 billion
StockStory’s Take
Republic Services delivered first quarter results that met Wall Street’s revenue expectations and modestly exceeded analyst profit forecasts. Management attributed the performance to disciplined pricing, effective cost management, and continued investment in digital and sustainability initiatives. CEO Jon Vander Ark emphasized the company’s “disciplined pricing execution” and highlighted the positive impact of ongoing technology and AI investments, which helped offset challenges such as flat sales volumes and higher fuel costs. Volume performance was suppressed by severe weather and contract losses in residential, but the company saw improvement in landfill and large container segments.
Looking ahead, Republic Services’ guidance is shaped by expectations for continued margin expansion through technology-driven productivity and a steady build in environmental solutions. Management believes that digital and AI investments—especially in pricing and routing—will provide meaningful financial benefits by 2028, with initial gains beginning this year. CFO Brian Delghiaccio noted that “pricing will come first” in realizing these benefits, while momentum in special waste and polymer center operations is expected to support stronger growth in the second half. The company is also monitoring macroeconomic uncertainty and commodity price movements, which could influence volume and profitability.
Key Insights from Management’s Remarks
Management attributed the quarter’s results to resilient pricing, targeted cost controls, and early benefits from digital transformation, while highlighting M&A and sustainability investments as ongoing strategic priorities.
Pricing execution drove margins: Republic Services delivered strong core pricing in both open market and contracted revenue streams, with management prioritizing customer retention and long-term value. The spread between core price and yield widened due to mix changes, notably a rebound in temporary large container activity linked to construction. Digital transformation underway: The company accelerated deployment of AI-powered tools for pricing, routing, and customer service. CEO Jon Vander Ark stated these initiatives are “expected to reinforce price retention and reduce customer attrition,” with the RISE digital platform and predictive analytics improving both efficiency and customer experience. Sustainability investments scale: Republic Services increased production at its polymer centers and advanced several renewable natural gas (RNG) projects. Management reported strong demand for domestic post-consumer plastics and expects to bring additional RNG facilities online in 2026, contributing to long-term growth. Environmental Solutions mixed performance: Organic revenue in the Environmental Solutions segment declined, impacted by the absence of a large emergency response project from the prior year and weather-related headwinds. However, the sales pipeline is growing, and management expects a return to year-over-year growth in the second half. M&A pipeline remains active: Over $700 million has been invested in acquisitions so far this year, primarily in recycling and waste. Management noted that the acquisition pipeline remains robust, with expectations to surpass $1 billion in total investments for the year, supporting both core and new market expansion.
Story Continues
Drivers of Future Performance
Republic Services’ outlook depends on successful technology rollouts, disciplined pricing, and M&A integration, with macro factors and commodity prices also influencing results.
AI and digital productivity gains: Management expects digital and AI-driven initiatives in pricing, routing, and customer service to contribute incremental margin expansion, with pricing benefits materializing first. Full impact from technology investments will ramp over the next several years, but early returns are anticipated this year and next. Environmental Solutions rebound: While the Environmental Solutions segment faced headwinds from tough prior-year comparisons and project delays, management anticipates sequential improvement and margin expansion in the second half. The growing sales pipeline and cross-selling initiatives are expected to support this recovery. Ongoing M&A and market expansion: The company plans to exceed $1 billion in acquisition investments for the year, targeting both market consolidation in existing geographies and entry into new segments. Management views disciplined capital deployment and strategic fit as critical to achieving long-term growth and profitability.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be tracking (1) the ramp-up and measurable impact of digital and AI-driven pricing and routing tools, (2) the recovery and margin improvement in the Environmental Solutions segment as project activity accelerates, and (3) progress on polymer center and RNG project rollouts. We will also monitor the cadence of acquisition activity and its integration, especially as management aims to surpass $1 billion in investments this year.
Republic Services currently trades at $200.61, in line with $201.55 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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- 3 S&P 500 Stocks That Fall Short
May 12, 2026
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here are three S&P 500 stocks to avoid and some better alternatives instead.
Republic Services (RSG)
Market Cap: $62.27 billion
Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.
Why Are We Cautious About RSG?
Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.7% over the last two years was below our standards for the industrials sector Flat unit sales over the past two years suggest it might have to lower prices to accelerate growth Anticipated sales growth of 5.1% for the next year implies demand will be shaky
Republic Services’s stock price of $202.14 implies a valuation ratio of 26.9x forward P/E. Check out our free in-depth research report to learn more about why RSG doesn’t pass our bar.
Expeditors (EXPD)
Market Cap: $19.86 billion
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Why Is EXPD Not Exciting?
Sales were flat over the last five years, indicating it’s failed to expand this cycle Gross margin of 13.5% is below its competitors, leaving less money to invest in areas like marketing and R&D Waning returns on capital imply its previous profit engines are losing steam
Expeditors is trading at $150.55 per share, or 22.6x forward P/E. If you’re considering EXPD for your portfolio, see our FREE research report to learn more.
KeyCorp (KEY)
Market Cap: $23.52 billion
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE:KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Does KEY Give Us Pause?
Muted 3.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers Net interest margin of 2.6% is well below other banks, signaling its loans aren’t very profitable Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.5% annually
At $21.82 per share, KeyCorp trades at 1.3x forward P/B. Dive into our free research report to see why there are better opportunities than KEY.
Story Continues
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- Why Republic Services (RSG) is a Top Growth Stock for the Long-Term
May 12, 2026 · zacks.com
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
- Republic Services: A Hidden Gem in Waste Management Worth Watching
May 11, 2026 · fool.com
Join us as we dive into Republic Services (RSG) and uncover why this stock is rated so highly by our experts. Could it be the investment opportunity you've been waiting for?
- Clean Harbors Q1 Earnings Beat on SKSS Gains, Revenues Fall Short
May 11, 2026
Clean Harbors, Inc. CLH reported mixed first-quarter 2026 results. Earnings per share (EPS) beat the Zacks Consensus Estimate, while revenues missed the same.
The earnings beat failed to impress the market, as the stock has dipped 6.9% since the release of results on May 6.
CLH posted first-quarter of 2026 earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.15 by 3.5%. Revenues came in at $1.46 billion, missing the consensus mark of $1.47 billion by 0.4%.
Earnings grew 9.2% year over year, while revenues increased 1.9%. Management highlighted stronger profitability in both operating segments, supported by disciplined pricing and a late-quarter lift in base oil pricing, alongside a record-low Total Recordable Incident Rate (TRIR) of 0.39.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote
CLH Starts 2026 Strong With Profitability Improvement
Clean Harbors described the quarter as better than expected, with higher profitability across both operating segments despite weather-related disruptions that weighed on parts of the collection and services business in February.
Management also pointed to continued momentum exiting the quarter, framing the operating backdrop as supportive for its disposal and recycling network, with added tailwinds from project services and PFAS-related opportunities.
Clean Harbors’ ES Business Benefits From Project Activity
Environmental Services generated first-quarter revenues of $1.24 billion, up 2.9% from the year-ago quarter. The company attributed growth to project services, including PFAS-related work and emergency response activity, while citing healthy demand for disposal and recycling services.
Operationally, the company reported Technical Services revenue growth of 5% and Safety-Kleen Environmental Services revenue growth of 7%, aided by pricing and higher volumes. Incineration utilization, including the Kimball incinerator, was 80% versus 81% a year ago, reflecting planned maintenance days and weather impacts. Landfill volumes increased 34% and Field Services revenues rose 7%, including a large-scale emergency event that generated approximately $10 million in revenues.
CLH’s SKSS Results Improve as Pricing Trends Turn
Safety-Kleen Sustainability Solutions posted revenues of $217.1 million, down 3.4% year over year, as lower market pricing for base and blended products outweighed other benefits. Management said that the revenue decline was expected, and noted that base oil prices strengthened late in the quarter.
Story Continues
Even with the softer revenue base, the segment delivered a sharp improvement in profitability. Management credited progress in its charge-for-oil strategy for waste oil collection services and cost actions taken over the past year. The company also said that it collected 53 million gallons of waste oil to keep its re-refinery running efficiently, while growing premium mix through higher direct lubricant gallons and Group III gallons sold compared with the prior-year quarter.
Clean Harbors Expands Margins on Pricing & Efficiency
On the consolidated income statement, income from operations increased 7% year over year to $118.9 million. Selling, general and administrative expenses rose to $207.1 million, with management attributing the higher SG&A rate to incentive compensation and insurance costs.
Adjusted EBITDA increased 5.5% to $247.9 million, with the adjusted EBITDA margin expanding 60 basis points to 17%. Management linked the margin expansion to disciplined pricing, leveraging volume growth, labor cost controls, cost internalization, and network and transportation efficiencies. Net income rose 7.7% to $63.2 million.
CLH Raises 2026 Targets on Stronger Segment Outlook
For the second quarter of 2026, Clean Harbors expects year-over-year adjusted EBITDA growth of 5-9%. Based on the first-quarter performance and market conditions, the company raised the midpoint of its full-year adjusted EBITDA guidance by $40 million and lifted the midpoint of adjusted free cash flow guidance by $10 million.
For 2026, CLH expects adjusted EBITDA of $1.24 billion to $1.30 billion (midpoint: $1.27 billion), alongside an adjusted free cash flow of $490 million to $550 million (midpoint: $520 million). The company’s outlook also includes anticipated GAAP net income of $421 million to $472 million, and net cash from operating activities of $840 million to $960 million.
Clean Harbors Maintains Flexibility for Buybacks & Deals
CLH ended the first quarter of 2026 with cash and cash equivalents of $548 million, and short-term marketable securities of $121 million. Management cited a net debt-to-EBITDA ratio of approximately 2X and a blended debt interest rate of 5.2%, positioning the company to fund internal investments and pursue acquisitions.
Cash provided by operations was $6.3 million in the quarter, while the adjusted free cash flow was negative $75.8 million, consistent with the company’s typical first-quarter seasonality. CLH also repurchased about 87,000 shares for $25 million at an average price of roughly $287 per share, ending March 2026 with approximately $575 million remaining under its repurchase authorization. Management noted it closed the DCI acquisition at the end of the quarter and continues to evaluate additional tuck-in opportunities largely tied to Environmental Services.
CLH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Republic Services, Inc. RSG delivered solid first-quarter 2026 results, with earnings per share of $1.70 beating the Zacks Consensus Estimate of $1.64 by 3.7%. Earnings increased 7.6% from $1.58 in the year-ago quarter.
Revenues rose 2.6% year over year to $4.11 billion and edged past the consensus mark of $4.10 billion.
IQVIA Holdings Inc. IQV posted first-quarter 2026 adjusted earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.83 by 2.5%. Revenues came in at $4.15 billion, topping the consensus mark of $4.08 billion by 1.6%.
Results improved year over year, with adjusted diluted earnings per share up 7.4% and revenues rising 8.4%.
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- Republic Services' 'Good' Underlying Results Partly Offset by Volume, Commodity Headwinds, RBC Says
May 8, 2026
Republic Services' (RSG) Q1 results were largely in-line with peers, with good underlying results pa
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- RSG Q1 Earnings Beat Estimates on Pricing & Margin Gains
May 8, 2026
Republic Services, Inc. RSG delivered solid first-quarter 2026 results, with earnings per share of $1.70 beating the Zacks Consensus Estimate of $1.64 by 3.7%. Earnings increased 7.6% from $1.58 in the year-ago quarter.
Revenues rose 2.6% year over year to $4.11 billion and edged past the consensus mark of $4.10 billion. Disciplined pricing and cost management supported profitability, as the adjusted EBITDA margin expanded 50 basis points to 32.1%.
Republic Services, Inc. Price, Consensus and EPS Surprise
Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote
RSG’s Pricing Execution Stands Out Despite Volume Drag
Republic Services’ internal growth leaned heavily on price in the quarter. Core price on total revenues increased 5.7%, reflecting continued traction in open market pricing and restricted pricing, even as fuel recovery fees provided only a modest lift.
Volume remained a headwind, with total revenues declining 0.8% on volume, while average yield added 3.4%. Management noted that severe weather weighed on activity during the quarter, but pointed to sequential improvement in several verticals, including landfill and container-related lines.
Republic Services Posts Broad-Based Collection Growth
Collection remained the largest contributor, generating $2.84 billion in revenues in the first quarter. Within the broader portfolio, small-container revenues rose to $1.31 billion, while large-container revenues came in at $768 million and residential revenues totaled $747 million, underscoring the scale of the core business.
Transfer revenues (net) increased to $200 million and landfill revenues (net) rose to $453 million. Environmental solutions revenues (net) declined to $405 million, while “other” revenues increased to $217 million, led by recycling processing and commodity sales of $112 million alongside other non-core revenues.
RSG Expands Segment Margins With Cost Discipline
Profitability improved across the consolidated model, supported by cost-control and underlying operating leverage. Net income was $525 million, translating to a net income margin of 12.8%, up from 12.3% a year ago.
On an adjusted basis, RSG reported $1.32 billion of adjusted EBITDA. By business type, Recycling & Waste produced adjusted EBITDA of $1.24 billion and an adjusted EBITDA margin of 33.6% compared with 33% in the prior-year quarter. Environmental Solutions generated adjusted EBITDA of $78 million with a margin of 19.2%, down from 20.8% last year, reflecting the year-over-year revenue decline in that business.
Story Continues
Republic Services’ Cash Flow Supports Capital Returns
RSG’s cash generation was a notable feature of the quarter. Cash provided by operating activities reached $1.23 billion, while the adjusted free cash flow totaled $984 million, up from $727 million in the year-ago period, aided by earnings growth and working capital timing.
The company continued to balance acquisition activity with shareholder returns. Cash invested in acquisitions was $433 million in the quarter, while total cash returned to shareholders was $507 million, including $314 million in share repurchases and $193 million in dividends. The board also declared a quarterly dividend of 62.5 cents per share, payable July 15, 2026.
RSG Ramps Digital, Sustainability & Growth Investments
Management emphasized continued investment in digital tools and sustainability initiatives aimed at supporting long-term growth and efficiency. On the earnings call, the company highlighted AI-enabled pricing, advanced routing and call-center tools, targeting at least $100 million of annual benefit by 2028, with pricing expected to contribute first as deployments scale.
RSG also reiterated progress in fleet electrification and renewable natural gas. The company ended the quarter with more than 200 electric collection vehicles in operation and expects to exceed 300 by year-end. In RNG, it brought nine projects online during 2025 and expects four additional projects to begin operations in 2026, expanding its landfill gas-to-energy portfolio to 82 projects.
RSG carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Automatic Data Processing, Inc. ADP posted third-quarter fiscal 2026 adjusted earnings per share of $3.37, beating the Zacks Consensus Estimate of $3.28 by 2.7%. The metric increased 10.1% from the year-ago quarter.
Total revenues came in at $5.94 billion, topping the consensus mark of $5.86 billion by 1.4% and rising 7% year over year. Operationally, Employer Services client revenue retention and overall client satisfaction reached record highs for the third quarter.
IQVIA Holdings Inc. IQV posted first-quarter 2026 adjusted earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.83 by 2.5%. Revenues came in at $4.15 billion, topping the consensus mark of $4.08 billion by 1.6%.
Results improved year over year, with adjusted diluted earnings per share up 7.4% and revenues rising 8.4%.
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- RSG Q1 Earnings Beat Estimates on Pricing & Margin Gains
May 8, 2026 · zacks.com
Republic Services tops Q1 EPS and revenue estimates as pricing and cost discipline lift the adjusted EBITDA margin to 32.1% despite volume drag.
- Republic Services (RSG) Surpasses Q1 Earnings and Revenue Estimates
May 7, 2026
Republic Services (RSG) came out with quarterly earnings of $1.7 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.54%. A quarter ago, it was expected that this waste management company would post earnings of $1.62 per share when it actually produced earnings of $1.76, delivering a surprise of +8.64%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Republic Services, which belongs to the Zacks Waste Removal Services industry, posted revenues of $4.11 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.40%. This compares to year-ago revenues of $4.01 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Republic Services shares have lost about 5.8% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Republic Services?
While Republic Services has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Republic Services was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.80 on $4.35 billion in revenues for the coming quarter and $7.22 on $17.16 billion in revenues for the current fiscal year.
Story Continues
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, LanzaTech Global, Inc. (LNZA), has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly loss of $2.88 per share in its upcoming report, which represents a year-over-year change of +71.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
LanzaTech Global, Inc.'s revenues are expected to be $12.1 million, up 27.6% from the year-ago quarter.
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- Republic Services (NYSE:RSG) Posts Q1 CY2026 Sales In Line With Estimates
May 7, 2026
Waste management company Republic Services (NYSE:RSG) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 2.6% year on year to $4.11 billion. Its non-GAAP profit of $1.70 per share was 3.8% above analysts’ consensus estimates.
Is now the time to buy Republic Services? Find out in our full research report.
Republic Services (RSG) Q1 CY2026 Highlights:
Revenue: $4.11 billion vs analyst estimates of $4.10 billion (2.6% year-on-year growth, in line) Adjusted EPS: $1.70 vs analyst estimates of $1.64 (3.8% beat) Adjusted EBITDA: $1.32 billion vs analyst estimates of $1.30 billion (32.1% margin, 1.4% beat) Operating Margin: 20.2%, in line with the same quarter last year Free Cash Flow Margin: 18.3%, similar to the same quarter last year Sales Volumes were flat year on year (1.2% in the same quarter last year) Market Capitalization: $61.7 billion
"We are off to a strong start and remain well positioned to achieve our full‑year objectives," said Jon Vander Ark, president and chief executive officer.
Company Overview
Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Republic Services’s 10.4% annualized revenue growth over the last five years was solid. Its growth beat the average industrials company and shows its offerings resonate with customers.Republic Services Quarterly Revenue
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Republic Services’s recent performance shows its demand has slowed as its annualized revenue growth of 4.7% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.Republic Services Year-On-Year Revenue Growth
We can better understand the company’s revenue dynamics by analyzing its number of units sold. Over the last two years, Republic Services’s units sold were flat. Because this number is lower than its revenue growth, we can see the company benefited from price increases.Republic Services Volume Sold
This quarter, Republic Services grew its revenue by 2.6% year on year, and its $4.11 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 4.1% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its newer products and services will not lead to better top-line performance yet.
Story Continues
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Operating Margin
Republic Services has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 19.1%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, Republic Services’s operating margin rose by 1.5 percentage points over the last five years, as its sales growth gave it operating leverage.Republic Services Trailing 12-Month Operating Margin (GAAP)
This quarter, Republic Services generated an operating margin profit margin of 20.2%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Republic Services’s EPS grew at 13.8% compounded annual growth rate over the last five years, higher than its 10.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.Republic Services Trailing 12-Month EPS (Non-GAAP)
Diving into Republic Services’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Republic Services’s operating margin was flat this quarter but expanded by 1.5 percentage points over the last five years. On top of that, its share count shrank by 3.3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.Republic Services Diluted Shares Outstanding
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Republic Services, its two-year annual EPS growth of 10.8% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.
In Q1, Republic Services reported adjusted EPS of $1.70, up from $1.58 in the same quarter last year. This print beat analysts’ estimates by 3.8%. Over the next 12 months, Wall Street expects Republic Services’s full-year EPS of $7.13 to grow 4%.
Key Takeaways from Republic Services’s Q1 Results
It was encouraging to see Republic Services beat analysts’ adjusted operating income expectations this quarter. We were also happy its EBITDA narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $202.03 immediately after reporting.
So do we think Republic Services is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.
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