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.
Write to Michael Calia at michael.calia@wsj.com
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