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Stericycle, Inc.’s third-quarter 2023 earnings matched the Zacks Consensus Estimate but revenues missed the same. With earnings failing to surpass estimates, the stock barely moved since the earnings release on Nov 2.
Quarterly EPS came in at 43 cents, decreasing 33.9% year over year. Revenues of $653.5 million missed the consensus mark by 3.9% and declined 5.3% year over year. Organic revenues decreased 1.6% year over year.
Stericycle, Inc. Price, Consensus and EPS Surprise
Regulated Waste and Compliance Services revenues declined 1.8% year over year on a reported basis but increased 4.1% on an organic basis to $439.9 million, higher than our estimated $425.9 million. Secure Information Destruction revenues decreased 11.9% year over year on a reported basis and 11.6% organically to $213.6 million, lower than our estimate of $254.9 million.
Revenues by Geography
Revenues from North America were $557.1 million compared with our estimate of $601.2 million, down 4.7% year over year on a reported basis and 2.1% organically. International revenues of $96.4 million declined 8.6% year over year on a reported basis but were up 1.3% organically and came higher than our expectation of $79.7 million.
Profitability Performance
Adjusted EBITDA was $96 million, down 19.2% from the year-ago quarter’s figure. Adjusted EBITDA margin was 14.8%, down from 17.3% in the year-ago quarter.
Balance Sheet & Cash Flow
Stericycle exited the quarter with cash and cash equivalents of $29.7 million compared with $30.7 million at the end of the prior quarter. Long-term debt was $1.3 billion, flat with the prior quarter figure. SRCL generated $38 million of net cash from operating activities, while capex was $38.5 million in the quarter.
Updated 2023 Outlook
Stericycle now expects adjusted EPS to be between $1.80 and $1.95 compared with the previous expectation of $1.75-$2.05. The midpoint ($1.88) of the revised guided range is above the current Zacks Consensus estimate of $1.79. The company expects 2-3% revenue growth organically compared with the previous anticipation of 3-5% growth.
Stericycle expects free cash flow to be between $170 million and $190 million compared with the prior expectation of $175-$205 million. It anticipates capital expenditures between $135 million and $145 million. The prior expectation was $125-$145 million.
Currently, Charles River carries a Zacks Rank #3 (Hold).
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Stericycle (SRCL) Barely Moves Despite In-Line Q3 Earnings
Stericycle, Inc.’s third-quarter 2023 earnings matched the Zacks Consensus Estimate but revenues missed the same. With earnings failing to surpass estimates, the stock barely moved since the earnings release on Nov 2.
Quarterly EPS came in at 43 cents, decreasing 33.9% year over year. Revenues of $653.5 million missed the consensus mark by 3.9% and declined 5.3% year over year. Organic revenues decreased 1.6% year over year.
Stericycle, Inc. Price, Consensus and EPS Surprise
Stericycle, Inc. price-consensus-eps-surprise-chart | Stericycle, Inc. Quote
Revenues by Service
Regulated Waste and Compliance Services revenues declined 1.8% year over year on a reported basis but increased 4.1% on an organic basis to $439.9 million, higher than our estimated $425.9 million. Secure Information Destruction revenues decreased 11.9% year over year on a reported basis and 11.6% organically to $213.6 million, lower than our estimate of $254.9 million.
Revenues by Geography
Revenues from North America were $557.1 million compared with our estimate of $601.2 million, down 4.7% year over year on a reported basis and 2.1% organically. International revenues of $96.4 million declined 8.6% year over year on a reported basis but were up 1.3% organically and came higher than our expectation of $79.7 million.
Profitability Performance
Adjusted EBITDA was $96 million, down 19.2% from the year-ago quarter’s figure. Adjusted EBITDA margin was 14.8%, down from 17.3% in the year-ago quarter.
Balance Sheet & Cash Flow
Stericycle exited the quarter with cash and cash equivalents of $29.7 million compared with $30.7 million at the end of the prior quarter. Long-term debt was $1.3 billion, flat with the prior quarter figure. SRCL generated $38 million of net cash from operating activities, while capex was $38.5 million in the quarter.
Updated 2023 Outlook
Stericycle now expects adjusted EPS to be between $1.80 and $1.95 compared with the previous expectation of $1.75-$2.05. The midpoint ($1.88) of the revised guided range is above the current Zacks Consensus estimate of $1.79. The company expects 2-3% revenue growth organically compared with the previous anticipation of 3-5% growth.
Stericycle expects free cash flow to be between $170 million and $190 million compared with the prior expectation of $175-$205 million. It anticipates capital expenditures between $135 million and $145 million. The prior expectation was $125-$145 million.
Currently, Charles River carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.