Republic Services Reports Strong Q3 Earnings, Despite Customer Service Concerns

Republic Services, Inc. (NYSE:RSG) recently announced its quarterly earnings, revealing a strong performance despite some challenges. The company reported $1.81 earnings per share (EPS) for the quarter, surpassing the consensus estimate of $1.62 by $0.19. The revenue for the quarter was $4.08 billion, although it fell slightly short of analyst estimates of $4.12 billion. On a year-over-year basis, the company’s revenue increased by 6.5%.

Analysts from various firms have adjusted their outlook on Republic Services. William Blair analysts boosted their FY2024 EPS estimates for the company, reflecting a positive outlook. However, some analysts, such as those from Scotiabank, have maintained a “Hold” rating due to revenue challenges and cost management efforts.

Despite the financial positives, Republic Services continues to face criticism regarding its customer service. Several customers have reported issues with inconsistent trash pickup, rate increases, and poor communication from customer service representatives. Some customers have expressed frustration over additional charges for services that they believe should be included in the standard cost of business.

The company has responded to some of these complaints, apologizing for the inconvenience and offering to resolve the issues through direct communication with the affected customers. However, the recurring nature of these complaints suggests ongoing challenges in maintaining customer satisfaction.

Investors have also shown interest in Republic Services, with funds like the Healthcare of Ontario Pension Plan Trust Fund and AustralianSuper Pty Ltd increasing their stakes in the company during the third quarter.