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Republic Services, Inc. RSG is scheduled to release its first-quarter 2025 results on April 24, after market close.
RSG has an impressive earnings surprise history. In the trailing four quarters, it surpassed the Zacks Consensus Estimate, with an average surprise of 9.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Republic Services, Inc. Price, Consensus and EPS Surprise
Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. Quote
Republic Services’ Q1 Expectations
The Zacks Consensus Estimate for the company’s revenues is pegged at $4.1 billion, indicating a 5.1% increase from the year-ago quarter’s reported figure. The top line is expected to have benefited from innovative technology on recycling and waste collection routes. The RISE digital platform, which enables cameras to identify overfilled containers and recycling contamination, is anticipated to have provided a boost to revenues.
We anticipate revenues from the Collection segment to be $2.7 billion, suggesting a 3.2% rise from the year-ago quarter’s actual. Landfill revenues (net) are anticipated at $440.5 million, implying year-over-year 8.9% growth. Our expectation for Transfer revenues (net) is at $203.8 million, hinting at an 11.5% increase on a year-over-year basis. We expect Environmental Solutions revenues (net) of $466.3 million, suggesting a year-over-year jump of 10.2%. The Other segment’s revenues are estimated at $199.5 million, indicating a 5.9% year-over-year increase.
We anticipate adjusted EBITDA of $1.2 billion, implying a 6.2% rise from the year-ago quarter’s actual. The EBITDA margin is expected to be 30.5%, suggesting a year-over-year decline of 40 basis points.
The consensus estimate for earnings per share is pegged at $1.52, indicating 4.8% growth from the year-ago quarter’s actual. Despite the anticipated weak margins, we believe that robust top-line growth is expected to have fueled the bottom line.
What Our Model Says About RSG
Our proven model does not conclusively predict an earnings beat for Republic Services this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
RSG has an Earnings ESP of -0.30% and a Zacks Rank of 3.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this time around.