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How Will Stericycle's (SRCL) Top Line Shape Up in Q3 Earnings?

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Stericycle, Inc. (SRCL - Free Report) is slated to report third-quarter 2018 results on Nov 1, after the bell.

Decline in revenues from the majority of its services is likely to dent the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for third-quarter revenues is pegged at $859 million, mirroring a year-over-year decline of 2.7%.

So far this year, shares of Stericycle have lost 27.8% compared with the S&P 500’s 1.8% decline.

 

Here are the expectations in details.

The Zacks Consensus Estimate for Regulated Waste and Compliance Services third-quarter revenues stands at $474 million, reflecting a year-over-year decline of 5.6%. The expected decline is likely to be due to impacts of divestitures. In the last reported quarter, these revenues declined 5.5%.

The consensus estimate for Communication and Related Services revenues is $77 million, indicating a year-over-year decline of 21%. The anticipated decline is likely to be due to decrease in volumes in Communication Solutions. In second-quarter 2018, these revenues decreased 10.7%.

For Manufacturing and Industrial Services revenues, the consensus mark stands at $80 million, indicating an 8% decline year over year mainly due to divestitures. These revenues were down 2.2% in the first quarter.

The consensus estimate for Secure Information Destruction Services revenues is pegged at $226 million, mirroring 10.2% growth year over year. Higher paper prices driven by increasing demand for recycled paper should support this growth. These revenues increased 8.3% in the second quarter.

Stericycle, Inc. Revenue (TTM)

Stericycle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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