Republic Services Surpasses Expectations in Q3 Earnings, Revenue Falls Short of Projections

PHOENIX - Republic Services, Inc. (NYSE:RSG) reported that its third-quarter earnings exceeded analyst expectations, although revenue fell short of forecasts. Shares of the waste management company dropped by 1.3% following the results.
Republic Services announced a third-quarter adjusted earnings per share of $1.81, surpassing the analyst consensus of $1.61 by $0.20. Revenue came in at $4.08 billion, below the $4.12 billion estimate.
Total revenue increased by 6.5% year-over-year; 4.2% of this came from organic growth, while 2.3% was attributed to acquisitions. The core price increase on total revenue was 6.2%, while volume revenue decreased by 1.2%.
The company raised its adjusted EBITDA margin by 210 basis points to 32.0% compared to the same quarter last year. Adjusted EBITDA increased from $1.15 billion last year to $1.30 billion.
"Our strong performance in the third quarter is a direct result of executing on our strategic priorities," said President and CEO Jon Vander Ark. "Through pricing above cost inflation and effective cost management, we achieved double-digit growth in adjusted EBITDA and earnings per share, and increased the adjusted EBITDA margin by more than 200 basis points."
Republic Services expects full-year revenue for 2024 to be near the lower end of its previous guidance range. However, the company anticipates reaching the upper end of its adjusted EBITDA guidance range.