Tag Archives: Republic Services

NYSE Second Quarter Results

NYSEKeeping abreast of quarterly results is important for stock prices.  But it’s not the only thing that matters: payout increases are also matters to be watched.  Still, according to an Investopedia article written by Ben McClure, “a company’s ability to hit earnings estimates is important to the price of your stocks.  If a company exceeds expectations, it’s usually rewarded with a jump in its share price.  If a company falls short of expectations – or even if it just meets expectations – the stock price can take a beating.”

When it comes to delivering stable results, Republic Services (NYSE:RSG) can be relied upon.  Investors can feel confident that the waste disposal services firm will deliver predictable results each quarter.  As CEO Don Slager said: “Our second quarter results continue to demonstrate the stability and predictability of our business, and the strength of our operating model. Strong pricing performance, positive volume growth and contributions from our strategic initiatives keep us well positioned to achieve our full year financial guidance.”

B&G Foods, Inc. (NYSE:BGS) is another firm that reported impressive earnings for the second quarter, totaling 30.3 million. Adjusted earnings came to 57 cents per share.  Given that the results were higher than expectations on Wall Street (for 46 cents per share from a Zacks Investment Research estimate), if McClure’s theory above is correct it will likely be “rewarded with a jump in its share price.”

Republic Services is also focused on its payout increases and so given its boost of 7% in this area for the seventh consecutive year, the firm “believes that the dividend increase reflects its confidence in future cash flows as well as its commitment to return cash to investors.”  So while quarter earnings are important, payout increases should not be ignored.  Investopedia staff wrote in a different article, that “dividend-paying stocks are usually more mature and predictable. Though this may be dull for some, the combination of a consistent dividend with an increasing stock price can offer an earnings potential powerful enough to get excited about.”