News

Stericycle, Inc. SRCL 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.

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).

Recent Earnings Snapshots of Some Service Providers

Omnicom OMC 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 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 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.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s an American AI company that’s riding low right now, but it has rounded up clients like BMW, GE, Dell Computer, and Bosch. It has prospects for not just doubling but quadrupling in the year to come. Of course, all our picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.