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Stericycle Inc Up 10.68% To $56.03 After Earnings Beat

Wednesday, February 28, 2024 02:03 PM | InvestorsObserver Analysts

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Stericycle Inc Up 10.68% To $56.03 After Earnings Beat

Stericycle Inc (SRCL) reported better than expected earnings this morning for Q4 2023.

Stericycle Inc's earnings came in at an EPS of $0.54 per share, 15.00% higher than estimates for an EPS of $0.47 per share. The firm's earnings are down 10% since reporting $0.6 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Stericycle Inc revenue averaged out to $657.9 million, with the business missing on those expectations with reported fourth-quarter revenue of $652 million. The $5.9 million (1%) negative revenue surprise led to negative 3% growth year-over-year as the firm reported revenue of $670.4 million in its year-ago quarter. The lower earnings growth compared to revenue points to Stericycle Inc not being able to improve its profit margin.

The stock is up 10.68% to $56.03 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 67. Meanwhile, the average Wall Street analyst rated the stock a Hold.

Stericycle is the largest provider of medical waste disposal and data destruction ( primarily paper shredding) services in the United States. Its next closest national competitor in the medical waste disposal space is Sharps Compliance, which generated $76 million of sales in fiscal 2021 (about 4% of Stericycle's global regulated waste and compliance revenue). Stericycle's data destruction business (Shred-It) is about twice the size of its closest competitor (Iron Mountain's information destruction segment). Stericycle has a global presence, with about 20% of its revenue earned outside North America.

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