S&P 500 (NYSE:SPY) component Republic Services (NYSE:RSG) will unveil its latest earnings on Thursday, July 26, 2012. Republic Services offers non-hazardous solid waste collection, transfer, recycling and disposal services in the United States.
Republic Services Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 49 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 54 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 49 cents during the last month. Analysts are projecting profit to rise by 4.1% versus last year to $1.88.
Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 38 cents per share versus a mean estimate of net income of 42 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 8 cents.
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Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $3.82 (-12.3%), from $31.04 to $27.22. The stock price saw one of its best stretches over the last year between January 24, 2012 and February 1, 2012, when shares rose for seven straight days, increasing 5.9% (+$1.66) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven straight days, dropping 3.6% (-98 cents) over that span.
A Look Back: In the first quarter, profit fell 9.7% to $142.9 million (38 cents a share) from $158.2 million (41 cents a share) the year earlier, missing analyst expectations. Revenue rose 0.9% to $1.98 billion from $1.96 billion.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.69 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 1% in the second quarter of the last fiscal year, 2.6% in the third quarter of the last fiscal year and 0.2% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 44.2% in the third quarter of the last fiscal year and 29.4% in the fourth quarter of the last fiscal year before dropping in the first quarter.
Analyst Ratings: There are mostly holds on the stock with four of seven analysts surveyed giving that rating.
Wall St. Revenue Expectations: On average, analysts predict $2.09 billion in revenue this quarter, no change from the year-ago quarter. Analysts are forecasting total revenue of $8.27 billion for the year, a rise of 1% from last year’s revenue of $8.19 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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