Republic Services, Inc. RSG is scheduled to report third-quarter 2019 results on Oct 30, after market close.
So far this year, shares of Republic Services have gained 19.4% compared with 20.4% rise of the industry it belongs to and 19.4% increase of the Zacks S&P 500 composite.
Let’s check out how things have shaped up for the announcement.
Top Line Likely to Improve Year Over Year
Strong pricing across Republic Services’ collection, disposal and recycling processing businesses and positive impact of internal growth and acquisitions are likely to have driven its revenues in the third quarter. The Zacks Consensus Estimate for revenues stands at $2.69 billion, indicating growth of 5% from the year-ago period reported figure. In second-quarter 2019, total revenues of $2.60 billion increased 3.5% year over year.
Republic Services, Inc. Revenue (TTM)
Republic Services, Inc. revenue-ttm | Republic Services, Inc. Quote
Bottom Line Likely to Increase
Benefit from lower-than-expected effective tax rate is likely to have partially offset the headwinds arising from non-cash tax-related charge. This is expected to get reflected in Republic Services’ third-quarter 2019 earnings, the Zacks Consensus Estimate for which is pegged at 85 cents per share, indicating growth of 3.7% from the year-ago quarter reported figure. In second-quarter 2019, adjusted earnings per share of 79 cents increased 8.2% year over year.
What Our Model Says
Our proven Zacks model does not conclusively predict an earnings beat for Republic Services this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Republic Services has an Earnings ESP of 0.00% and a Zacks Rank #3.
Republic Services, Inc. Price and EPS Surprise
Republic Services, Inc. price-eps-surprise | Republic Services, Inc. Quote
Stocks to Consider
Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on third-quarter 2019 earnings:
Verisk VRSK has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.
WEX Inc. WEX has an Earnings ESP of +1.24% and a Zacks Rank #3. The company is slated to report results on Oct 31.
Fidelity National Information Services, Inc. FIS has an Earnings ESP of +0.13% and a Zacks Rank #3. The company is slated to release results on Nov 5.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
WEX Inc. (WEX) : Free Stock Analysis Report
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
Republic Services, Inc. (RSG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research