Republic Services 2Q Sales Rise on Higher Prices

Dow Jones08-07

Republic Services' second-quarter sales gained as the company raised its prices.

The waste management company on Thursday posted a profit of $566 million, or $1.84 a share, compared with $550 million, or $1.75 a share, a year earlier.

Adjusted earnings per share were $1.85, compared with estimates of $1.81 a share according to analysts polled by FactSet.

Revenue rose 4.6% to $4.43 billion, topping analyst estimates of $4.36 billion.

The increase was driven by organic growth in the company's recycling and waste business, as well as a boost from acquisitions, which offset a slight decline in its environmental solutions business.

Chief Executive Jon Vander Ark attributed the results to the company's higher prices, which outpaced cost inflation, as well as efforts to keep a lid on costs. Core price rose 5.3% in the quarter.

For the full year, the company now expects revenue of $17.2 billion to $17.3 billion, up from the prior outlook it gave in February for about $17.1 billion to $17.2 billion. It now expects adjusted earnings per share of $7.23 to $7.28, from a previous view of $7.20 to $7.28.

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