Republic Services Profit Hurt By Debt Extinguishment

   By Ezequiel Minaya 
 

Trash collector Republic Services Inc. on Thursday posted a slip in profit because of a loss on extinguishment of debt, though revenue rose with the company's collection business climbing 2%.

Collection is the largest segment for Republic Services. The business climbed to $1.81 billion from $1.78 billion during the same period a year earlier.

The company increased its annual forecast for adjusted earnings on a per-share basis to a range of $2.19 to $2.20 from $2.13 to $2.17. Analysts surveyed by Thomson Reuters expect $2.16 a share.

For the coming 2017 fiscal year, the company expects earnings per share between $2.29 and $2.34, with adjusted earnings in the range of $2.31 to $2.36. Analysts expect adjusted earnings of $2.36 a share.

For the three months ended Sept 30, costs of operations increased 6.2% to $1.48 billion.

Among the results, revenue for residential collection was flat at $564 million, while large-container industrial collection rose 2.9% and sale of recycled commodities climbed 15.3% to $114.6 million

In all, for the quarter ended in September, Republic Services earned $85.6 million, or 25 cents a share, down from $215 million, or 61 cents a share, a year earlier. Earnings excluding items were 62 cents a share, up from 53 cents a year ago.

Revenue increased 2.8% to $2.41 billion.

Adjusted earnings beat Wall Street expectations. Analysts surveyed by Thomson Reuters expected earnings of 58 cents a share on revenue of $2.41 billion.

Shares were inactive after-hours Thursday.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

October 27, 2016 17:11 ET (21:11 GMT)

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