NYSE$RSG

Republic Services Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Republic Services reported strong third-quarter results, driven by broad-based revenue growth and strategic execution.

Republic Services reported a strong third quarter with a 6.3% increase in total revenue, including 4.6% organic growth and 1.7% growth from acquisitions. The company's adjusted EBITDA grew by 9%, leading to a 70 basis points expansion in adjusted EBITDA margin. They also invested over $900 million in acquisitions and the board authorized $3 billion for share repurchases.

  • Reported EPS was $1.52, and adjusted EPS was $1.54.
  • Net income margin expanded by 100 basis points, and adjusted EBITDA margin expanded by 70 basis points.
  • Cash flow from operations was $2,719 million, and adjusted free cash flow was $1,827 million.
  • Invested more than $900 million in value-creating acquisitions.

Headline financials

Total Revenue

$4.41B

Previous: $4.15B+6.3%
EPS (adj)

$1.54

Previous: $1.34+14.9%
Adjusted EBITDA

$1.15B

Previous: $1.1B+4.2%
Adjusted EBITDA Margin

29.9%

Previous: 29.2%+2.4%
Net Income Margin

12.6%

Previous: 11.6%+8.6%
Capital Expenditures

-$1.08B

Previous: -$925M-17.1%
Free Cash Flow

-$603M

Previous: -$508M-18.7%
Net Income

$480M

Previous: $417M+15.2%
Operating Income

$728M

Previous: $664M+9.6%
Gross Profit

$2.13B

Previous: $1.96B+8.6%
Cash & Equivalents

$158M

Previous: $81.4M+93.5%
Total Assets

$30B

Previous: $28.4B+5.8%
Stock-Based Comp

$10.3M

Previous: $9.6M+7.3%

Revenue & EPS history

Republic Services · Revenue · Quarterly

$4.41B

Q3 2023+6.3%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Republic Services · $3.46B total across 3 segments · Q3 2023

  • Collection
    $2.62B+7.8%
  • Landfill (net)
    $436M+5.8%
  • Environmental Solutions (net)
    $405M+1.9%

Forward guidance

The Company now expects full-year 2023 diluted earnings per share to be in the range of $5.30 to $5.33 and adjusted diluted earnings per share to be in the range of $5.46 to $5.49. The increase is primarily due to a lower than expected tax rate. The Company reiterates the full-year 2023 guidance ranges for adjusted EBITDA and adjusted free cash flow provided in July.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.6%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+3.0%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+5.9%

Q4 2013

Best reaction

-6.6%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%+1.1%+4.5%
Q4 2025+0.4%+0.0%-0.9%
Q3 2025-2.1%-1.7%+3.4%
Q2 2025-0.4%+0.2%+1.0%
Q1 2025+1.2%+4.1%+5.0%
Q4 2024+3.1%+2.3%+3.3%
Q3 2024-0.8%-0.9%+8.9%
Q2 2024-4.9%-3.5%+3.6%
Q1 2024-3.8%-4.1%-5.9%
Q4 2023+0.6%-0.7%+3.6%
Q3 2023-1.1%+0.6%+8.7%
Q2 2023+0.4%-2.0%-3.7%
Q1 2023+5.4%+5.6%+2.8%
Q4 2022+4.1%+5.7%+4.7%
Q3 2022-0.3%-1.8%+2.4%
Q2 2022+1.1%+1.7%+1.7%
Q1 2022+1.2%-3.3%+0.6%
Q4 2021-5.8%-7.2%-0.9%
Q3 2021+4.2%+3.9%+4.6%
Q2 2021+2.6%+3.8%+7.1%
Q1 2021+1.9%+3.1%+0.5%
Q4 2020-1.8%-1.7%+8.4%
Q3 2020+3.4%+8.7%+1.9%
Q2 2020+4.7%+5.1%+8.1%
Q1 2020+1.7%+5.3%+12.5%
Q4 2019+2.0%+1.8%-13.7%
Q3 2019-0.4%-1.9%+0.9%
Q2 2019+4.1%+3.2%+0.8%
Q1 2019+1.6%+4.4%+6.6%
Q4 2018-0.9%+0.3%+0.7%
Q3 2018+1.0%+4.0%+9.6%
Q2 2018+2.7%+2.7%+3.7%
Q1 2018+3.9%+5.1%+5.1%
Q4 2017-4.1%-2.0%+6.7%
Q3 2017-1.0%-0.6%-0.5%
Q2 2017-0.8%-0.3%-0.7%
Q1 2017-0.4%+0.2%-0.3%
Q4 2016+2.8%+3.6%+7.2%
Q3 2016+1.3%+0.0%+8.5%
Q2 2016-0.8%-1.4%-2.2%
Q1 2016+1.2%
Q4 2015-0.2%
Q3 2015+0.1%
Q2 2015+2.3%
Q1 2015+3.7%
Q4 2014-3.2%
Q3 2014-2.4%
Q2 2014+0.9%
Q1 2014-1.3%
Q4 2013+5.9%
Q3 2013+3.0%
Q2 2013-2.4%
Q1 2013+3.3%
Q4 2012-1.4%
Q3 2012-6.6%
Q2 2012+3.9%
Q1 2012-0.1%
Q4 2011+0.1%
Q3 2011-3.6%
Q2 2011+0.0%
Q1 2011-0.1%
Q4 2007-1.4%
Q4 2010-1.4%
Q3 2010-5.0%
Q2 2010+1.5%
Q1 2009+4.7%
Q1 2010+0.2%
Q4 2009+1.7%
Q3 2008+3.2%
Q3 2009+3.2%
Q2 2009+2.6%
Q4 2008+2.6%
Q2 2008+2.6%

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