What You Need to Know Ahead of Republic Services' Earnings Release

Valued at a market cap of $75.8 billion, Republic Services, Inc. (RSG) offers environmental services in the U.S. and Canada. The Phoenix, Arizona-based company is involved in the collection and processing of recyclable, solid waste, and industrial waste materials, transportation and disposal of non-hazardous and hazardous waste streams, and other environmental solutions. It is expected to announce its fiscal Q2 earnings for 2025 after the market closes on Tuesday, Jul. 29.

Ahead of this event, analysts expect this waste collection company to report a profit of $1.75 per share, up 8.7% from $1.61 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. In Q1, RSG’s EPS of $1.58 outpaced the forecasted figure by almost 4%.

For fiscal 2025, analysts expect RSG to report a profit of $6.90 per share, up 6.8% from $6.46 per share in fiscal 2024. Its EPS is expected to further grow 10% year-over-year to $7.59 in fiscal 2026. 

Shares of RSG have rallied 24.4% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 11.9% return and the Industrial Select Sector SPDR Fund’s (XLI) 22.8% uptick over the same time frame.

On Apr. 24, Republic Services released its Q1 results, and its shares surged 1.2% in the following trading session. The company’s revenue grew 3.8% year-over-year to $4 billion. However, due to sluggish cyclical volumes and challenging winter weather, it missed the consensus estimates by nearly 1%. Nonetheless, despite missing the revenue estimates, its adjusted EPS of $1.58 improved 9% from the year-ago quarter and topped Wall Street expectations by almost 4%. Its adjusted EBITDA advanced 8.8% from the same period last year, reaching $1.3 billion, with a 140 basis-point expansion in its adjusted EBITDA margin. Pricing ahead of cost inflation, combined with effective cost management by the company, supported its profitability.

Wall Street analysts are moderately optimistic about RSG’s stock, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, 12 recommend "Strong Buy," two indicate "Moderate Buy," and nine suggest "Hold.” The mean price target for RSG is $266.14, which indicates a 9.8% potential upside from the current levels.