Waste management Republic Services Q3 adjusted profit beats estimates on higher margins

Reuters10-31
Waste management Republic Services Q3 adjusted profit beats estimates on higher margins 

Overview

  • Republic Services Q3 revenue missed analyst expectations, per LSEG data

  • Adjusted EPS for Q3 beats consensus, reflecting strong operational execution

  • Company invested over $1 bln in acquisitions year-to-date

Outlook

  • Company expects revenue to be near the low end of full-year 2025 guidance

  • Company reiterates all other financial components of 2025 guidance

Result Drivers

  • PRICING STRATEGY - Effective pricing ahead of cost inflation and disciplined operational execution expanded adjusted EBITDA margin by 80 basis points

  • ACQUISITIONS - Revenue growth included 1.6% from acquisitions, contributing to overall 3.3% revenue increase

  • RECYCLING IMPACT - Average recycled commodity price per ton decreased by $51, affecting recycling revenue

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$4.21 bln

$4.24 bln (19 Analysts)

Q3 Adjusted EPS

Beat

$1.90

$1.78 (20 Analysts)

Q3 EPS

$1.76

Q3 Adjusted Net Income

Beat

$594 mln

$555.94 mln (14 Analysts)

Q3 Net Income

$550 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Republic Services Inc is $260.00, about 19% above its October 29 closing price of $210.50

Press Release: ID:nPn4XfJ5Ya

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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