Trash management firm Republic Services misses first-quarter revenue estimates, shares fall

Reuters
04-25
Trash management firm Republic Services misses first-quarter revenue estimates, shares fall

April 24 (Reuters) - Garbage management firm Republic Services RSG.N reported first-quarter revenue below Wall Street estimates on Thursday, as lower volumes and bad weather more than offset the impact of higher pricing and the company's cost-cutting initiatives.

Shares of the company, which holds a market value of more than $75 billion, were down 2% to $236 in after-market trading.

Quarterly revenue came in at $4.01 billion from $3.86 billion in the same period last year, but still below the analysts' average estimate of $4.05 billion.

"Topline results were impacted by sluggish cyclical volumes and challenging winter weather," CEO Jon Vander said.

The disposal solutions provider reported an adjusted profit of $1.58 per share for the quarter ended March 31. Analysts, on average, had expected $1.53 apiece, according to data compiled by LSEG.

"Our business continues to perform well even with increased volatility in the broader economy," Vander added.

The company said it achieved 140 basis points of adjusted EBITDA margin expansion in the quarter by pricing ahead of cost inflation and effective cost management.

Phoenix, Arizona-based Republic Services provides recycling, solid waste, special waste and hazardous waste management services. It operates across the United States and Canada through 367 collection operations and more than 200 active landfills.

(Reporting by Anshuman Tripathy and Abhinav Parmar in Bengaluru; Editing by Alan Barona)

((Anshuman.Tripathy@thomsonreuters.com))

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