The Republic Services, Inc. (NYSE:RSG) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Republic Services, Inc. (NYSE:RSG) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to US$215. The result was positive overall - although revenues of US$4.4b were in line with what the analysts predicted, Republic Services surprised by delivering a statutory profit of US$1.84 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Republic Services after the latest results.

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Taking into account the latest results, the most recent consensus for Republic Services from 25 analysts is for revenues of US$17.3b in 2026. If met, it would imply a credible 2.3% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$7.25, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$17.2b and earnings per share (EPS) of US$7.26 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Republic Services

The analysts reconfirmed their price target of US$247, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Republic Services analyst has a price target of US$272 per share, while the most pessimistic values it at US$208. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Republic Services' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Republic Services' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 9.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Republic Services is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Republic Services' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Republic Services analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Republic Services that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.