Non-hazardous solid waste collection and disposal services provider Republic Services Inc. (RSG) said Monday its third quarter profit increased from last year, on strong revenue growth as core price increase helped offset higher charges. On adjusted basis, the company's quarterly earnings exceeded Street consensus. Looking ahead, the company also raised its adjusted earnings outlook forecast for fiscal 2009.
The Phoenix, Arizona-based company posted net income of $120.5 million or $0.32 per share for the third quarter, compared to $88.7 million or $0.48 per share in the prior year quarter.
Result for the quarter included $12.3 million or $0.02 per share of restructuring charges, and $31.8 million or $0.05 per share of loss on extinguishment of debt.
Excluding items, net income was $149.3 million or $0.39 per share, compared to $90.7 million or $0.49 per share in the year-ago quarter. On average, 6 analysts polled by Thomson Reuters expected the company to report earnings of $0.36 per share for the quarter. Analysts' estimates typically exclude special items.
Third quarter revenue increased to $2.07 billion from $834.0 million in the same quarter last year. Four analysts had a consensus revenue estimate of $2.07 billion for the quarter.
Core price grew by 2.8% for the quarter. Offsetting the core price growth of 2.8% were decreases of 10.1% in core volume, 1.9% of commodity pricing and 3.6% in fuel recovery fees, the company noted.
Total collection revenue surged to $1.59 billion from $642.6 million, and transfer and disposal revenue grew to $396.7 million from $150.7 million in the year-ago quarter.
In a separate development, Republic said its board has approved a regular quarterly dividend of $0.19 per share to be paid on January 18, 2010 to shareholders of record on January 4, 2010.
For the nine-month period of 2009, Republic reported net income of $459.4 million or $1.21 per share, compared to $205.5 million, or $1.11 per share, for the comparable period last year.
Excluding items, net income rose to $438.6 million or $1.16 per share from $251.3 million or $1.36 per share in the prior year quarter.
Revenue for the period increased to $6.20 billion compared to $2.44 billion in the previous year period.
For the full year 2009, Republic now estimates adjusted earnings guidance of $1.46 to $1.48 per share, compared to its previous estimate of $1.43 to $1.45 per share. The Street currently expects earnings of $1.46 per share for the year.
Another peer, Waste Management, Inc. (WM) reported a 10.6% year-over-year decline in profit for the third quarter, as falling revenues on lower volumes offset higher prices and cost cutting actions. The company also reaffirmed its earnings forecast for fiscal 2009.
Republic Services closed Monday's regular trading session at $26.13, up 22 cents on a volume of 2.53 million shares. In after-hours, the share lost 4 cents.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.