Republic Services Earnings Outpace Estimates in Q1, Revenues Miss

Republic Services, Inc. RSG reported mixed first-quarter 2025 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.RSG’s earnings per share (EPS) of $1.58 outpaced the Zacks Consensus Estimate by 4% and gained 9% from the year-ago quarter. Revenues of $4 billion missed the consensus mark by a slight margin but increased 3.8% year over year.The RSG stock has risen 26.8% in a year, outperforming the 8.9% rally of the industry it belongs to and 6.7% growth of the Zacks S&P 500 Composite.Republic Services, Inc. Price, Consensus and EPS Surprise  Republic Services, Inc. price-consensus-eps-surprise-chart | Republic Services, Inc. QuoteRepublic Services’ Q1 Segmental RevenuesRevenues from Collection totaled $2.7 billion, up 3% from the year-ago quarter, meeting our estimate. Environmental solutions’ revenues (net) of $449 million grew 5.9% year over year and missed our projection of $466.3 million.Revenues (net) in the Transfer and Landfill segments were $188 million and $421 million, increasing 2.7% and 4.2% on a year-over-year basis, respectively. The Transfer and Landfill segments’ revenues missed our projection of $203.8 million and $440.5 million, respectively.The Other segment’s revenues of $208 million grew 10.6% from the year-ago quarter’s actual and surpassed our expectation of $199.5 million.Operating Results of RSGAdjusted EBITDA for the quarter was $1.3 billion, increasing 8.8% from the year-ago quarter, beating our estimate of $1.2 billion. The adjusted EBITDA margin was 31.6%, up 140 basis points from the year-ago quarter, surpassing our projection of 30.5%.Balance Sheet & Cash Flow of RSG.Republic Services exited the first quarter of 2025 with cash and cash equivalents of $83 million compared with $74 million at the end of the fourth quarter of 2024. The long-term debt (net of current maturities) was $12.9 billion compared with $11.9 billion at the end of the preceding quarter.RSG generated $1 billion in cash from operating activities in the first quarter of 2025. The adjusted free cash flow was $727 million. Capital expenditure was $459 million.Republic Services carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Republic Services’ 2025 GuidanceFor 2025, RSG expects revenues of $16.85-$16.95 billion. The mid-point ($16.90 billion) of the guided range is higher than the Zacks Consensus Estimate for revenues of $16.89 billion.The company expects the adjusted EPS to be $6.82-$6.90. The mid-point ($6.86) of the guided range is in line with the Zacks Consensus Estimate. The adjusted EBITDA view is $5.28-$5.33 million.Earnings SnapshotThe Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results.IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 8.3% year over year.Fiserv, Inc. FI posted mixed first-quarter 2025 results.FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year.Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report Republic Services, Inc. (RSG): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks