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Republic Services (RSG) made quarterly profit of $ 1.11 per share, beating Zacks’ consensus estimate of $ 1.03 per share. This compares to a profit of $ 1 per share a year ago. These figures are corrected for non-recurring items.
This quarterly report represents a surprise earnings of 7.77%. A quarter ago, this waste management company was expected to post a profit of $ 0.94 per share when it actually made a profit of $ 1.09, offering a surprise of 15 , 96%.
In the past four quarters, the company has beaten consensus EPS estimates four times.
Republic Services, which is part of Zacks’ waste disposal services industry, reported revenue of $ 2.93 billion for the quarter ended September 2021, beating the consensus estimate of Zacks by 3.93%. Zacks. This compares to revenues of $ 2.57 billion a year ago. The company has exceeded consensus revenue estimates three times in the past four quarters.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings expectations will primarily depend on management feedback on the profit call.
Shares of Republic Services are up about 34.1% year-to-date against the S&P 500’s 21.2% gain.
What is the next step for the services of the Republic?
While Republic Services has outperformed 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 metric that can help investors solve this problem is the company’s earnings outlook. This not only includes the current consensus earnings expectations for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this publication of results, the trend in revised estimates for Republic Services was favorable. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status translates to a Zacks Rank # 2 (Buy) for the stock. Thus, stocks are expected to outperform the market in the near future. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. The current consensus estimate of EPS is $ 1.01 on $ 2.8 billion of revenue for the coming quarter and $ 4.06 on $ 11.06 billion of revenue for the current year.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of Zacks industry rankings, Waste Removal Services is currently in the top 34% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
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