We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stericycle (SRCL) Stock Rises 2% Since Q1 Earnings Beat
Read MoreHide Full Article
Stericycle, Inc. (SRCL - Free Report) reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The stock has gained 2% since the release of results in response to the better-than-expected earnings performance and impressive guidance.
For 2024, Stericycle expects adjusted EPS to be between $2.2 and $2.5, the midpoint ($2.35) of which is above the current Zacks Consensus estimate of $2.32.
SRCL’s quarterly adjusted EPS came in at 57 cents, which surpassed the consensus estimate by 5.6% and increased 16.3% on a year-over-year basis. Revenues of $665 million missed the consensus mark by 1.6% and declined 2.8% year over year.
Stericycle, Inc. Price, Consensus and EPS Surprise
Regulated Waste and Compliance Services revenues declined marginally year over year but increased 2.1% on an organic basis to $447.8 million, staying higher than our estimated $443.4 million. Secure Information Destruction revenues decreased 6.8% from the year-ago quarter and 6.3% on an organic basis to $217.1 million, staying lower than our estimate of $229.1 million.
Revenues by Geography
Revenues from North America were $569.2 million, lower than our estimate of $570.9 million, down marginally on a reported basis as well as organically. International revenues of $95.7 million declined 13.7% from the year-ago quarter on a reported basis and marginally on an organic basis and came lower than our expectation of $101.7 million.
Profitability Performance
Adjusted EBITDA was $116.2 million, up 4.4% from the year-ago quarter’s figure. Adjusted EBITDA margin was 17.5%, up 120 basis points from the year-ago quarter.
Balance Sheet & Cash Flow
Stericycle exited the quarter with cash and cash equivalents of $31 million compared with $35.3 million at the end of the prior quarter. Long-term debt was $1.4 billion compared with $1.3 billion in the preceding quarter. SRCL used $54.5 million of net cash in operating activities, while capex was $43.1 million.
2024 Guidance
The company expects 3-5% revenue growth organically. Stericycle expects free cash flow to be between $210 million and $265 million. It anticipates capital expenditures between $140 million and $160 million.
Currently, Stericycle carries a Zacks Rank #3 (Hold).
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Equifax (EFX - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
EFX’s adjusted earnings were $1.5 per share, which beat the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Stericycle (SRCL) Stock Rises 2% Since Q1 Earnings Beat
Stericycle, Inc. (SRCL - Free Report) reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The stock has gained 2% since the release of results in response to the better-than-expected earnings performance and impressive guidance.
For 2024, Stericycle expects adjusted EPS to be between $2.2 and $2.5, the midpoint ($2.35) of which is above the current Zacks Consensus estimate of $2.32.
SRCL’s quarterly adjusted EPS came in at 57 cents, which surpassed the consensus estimate by 5.6% and increased 16.3% on a year-over-year basis. Revenues of $665 million missed the consensus mark by 1.6% and declined 2.8% year over year.
Stericycle, Inc. Price, Consensus and EPS Surprise
Stericycle, Inc. price-consensus-eps-surprise-chart | Stericycle, Inc. Quote
Segmental Revenues
Regulated Waste and Compliance Services revenues declined marginally year over year but increased 2.1% on an organic basis to $447.8 million, staying higher than our estimated $443.4 million. Secure Information Destruction revenues decreased 6.8% from the year-ago quarter and 6.3% on an organic basis to $217.1 million, staying lower than our estimate of $229.1 million.
Revenues by Geography
Revenues from North America were $569.2 million, lower than our estimate of $570.9 million, down marginally on a reported basis as well as organically. International revenues of $95.7 million declined 13.7% from the year-ago quarter on a reported basis and marginally on an organic basis and came lower than our expectation of $101.7 million.
Profitability Performance
Adjusted EBITDA was $116.2 million, up 4.4% from the year-ago quarter’s figure. Adjusted EBITDA margin was 17.5%, up 120 basis points from the year-ago quarter.
Balance Sheet & Cash Flow
Stericycle exited the quarter with cash and cash equivalents of $31 million compared with $35.3 million at the end of the prior quarter. Long-term debt was $1.4 billion compared with $1.3 billion in the preceding quarter. SRCL used $54.5 million of net cash in operating activities, while capex was $43.1 million.
2024 Guidance
The company expects 3-5% revenue growth organically. Stericycle expects free cash flow to be between $210 million and $265 million. It anticipates capital expenditures between $140 million and $160 million.
Currently, Stericycle 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 of Some Service Providers
Omnicom (OMC - Free Report) reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Equifax (EFX - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
EFX’s adjusted earnings were $1.5 per share, which beat the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.