Republic Services 4th-Quarter Profit Jumps on Revenue, Margin Growth

   By Michael Calia 
 

Republic Services Inc. (RSG) said its fourth-quarter profit rose 86% as the waste-transport company reported higher revenue and wider operating margins.

The results exceeded Wall Street expectations.

The company said it expected per-share earnings of $1.93 to $1.98 and a 3.5% to 4.5% increase in revenue. Analysts surveyed by Thomson Reuters were expecting $1.98 a share and a 3% revenue increase.

Republic, the no. 2 trash hauler in the U.S. behind Waste Management Inc. (WM), has been trying to restructure and consolidate operations in a bid to cut overhead costs. After about a year of generally weak results, the company has now beat expectations in two consecutive quarters.

For the fourth quarter, Republic posted earnings of $236.6 million, or 65 cents a share, up from $127 million, or 35 cents a share, a year earlier. The prior-year period included $11.1 million in restructuring charges.

Excluding certain items, per-share earnings rose to 53 cents from 43 cents.

Revenue increased 5.6% to $2.14 billion.

Analysts polled by Thomson Reuters had expected 46 cents a share in earnings on $2.12 billion in revenue.

Operating margin widened to 18.8% from 14.2%.

Core prices rose 3.4% as fuel recovery fees rose 0.2%, volume increased 2.5%, and recycled commodities pricing ticked up 1%.

Shares of Republic Services were inactive at $31.87 in after-hours trading.

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