Republic Services (NYSE: RSG) reported Q3 EPS of $0.67, $0.04 better than the analyst estimate of $0.63. Revenue for the quarter came in at $2.56 billion versus the consensus estimate of $2.54 billion.

2018 Preliminary Financial Outlook

Republic is providing a preliminary financial outlook for 2018. It should be noted that the preliminary outlook does not represent full detailed guidance, but rather a point-in-time estimate based on its current projections of 2017 performance, early reviews of the 2018 budget process and current business and economic conditions. Consistent with prior practice, the Company will provide formal financial guidance in February 2018 once the budget process is complete and full-year 2017 results are reported.

2018 Preliminary Financial Outlook:

• Adjusted diluted earnings per share is expected to be in a range of $2.53 to $2.58, which excludes the impact of restructuring charges.
• Adjusted free cash flow is expected to be in a range of $925 million to $950 million. Adjusted free cash flow consists of cash provided by operating activities, less property and equipment received, plus proceeds from the sale of property and equipment, and is exclusive of cash paid for restructuring, net of tax.

Mr. Slager commented, "We expect current business and economic conditions to continue into 2018, positioning us well for high-single digit growth in earnings and free cash flow per share despite a headwind from recycled commodity prices."

GUIDANCE:

Republic Services sees FY2018 EPS of $2.53-$2.58, versus the consensus of $2.62.

Third-Quarter Financial Highlights:

• EPS was $0.66 per share. Adjusted EPS, a non-GAAP measure, was $0.67 per share, an increase of 8 percent over the prior year despite a 1-cent headwind due to the hurricanes.
• Year-to-date cash provided by operating activities was $1.4 billion and adjusted free cash flow, a non-GAAP measure, was $606 million, an increase of approximately 5 percent over the prior year.
• Total cash returned to shareholders through dividends and share repurchases was $227 million. Year-to-date cash returned to shareholders was $682 million.
• Total revenue increased 6.3 percent over the prior year.
• Revenue growth from average yield was 2.5 percent and volumes increased 1.6 percent.
• Core price increased revenues by 4.1 percent, which consisted of 5.1 percent in the open market and 2.3 percent in the restricted portion of the business.
• Adjusted EBITDA was $718 million and adjusted EBITDA margin was 28 percent of revenue.

For earnings history and earnings-related data on Republic Services (RSG) click here.