Stericycle, Inc.’s SRCL fourth-quarter 2022 earnings matched the Zacks Consensus Estimate while revenues missed the same.
The stock declined 3% since the earnings release on Feb 23 as EPS guidance for 2023 was weak. The company expects adjusted EPS to be between $1.75 and $2.05, lower than the current Zacks Consensus Estimate of $2.36.
The stock has declined 18.9% over the past year compared with the 0.7% decline of the industry it belongs to.
Stericycle, Inc. Price
Stericycle, Inc. price | Stericycle, Inc. Quote
Quarterly EPS came in at 60 cents and increased 57.9% year over year. Revenues of $670.4 million missed the consensus mark by 3.9% but increased 2% year over year. Organic revenues increased 5.7% year over year.
Revenues by Service
Regulated Waste and Compliance Services revenues declined 1.4% year over year on a reported basis but increased 2.8% on an organic basis to $449.3 million. Secure Information Destruction revenues increased 9.7% year over year on a reported basis and 12.2% organically to $221.1 million.
Revenues by Geography
Revenues from North America were $565.9 million, up 5.5% year over year on a reported basis and 7.6% organically. International revenues of $104.5 million declined 13.7% year over year on a reported basis and 2.6% organically.
Profitability Performance
Adjusted EBITDA was $117.6 million, up 27.4% from the year-ago quarter’s figure. The adjusted EBITDA margin was 17.5%, up from 14% in the prior-year quarter.
Adjusted operating income in the quarter amounted to $90.6 million, up 41.1% from the year-ago quarter’s levels. Adjusted operating margin was 13.5%, up from 9.8% in the prior-year quarter.
Balance Sheet & Cash Flow
Stericycle exited the quarter with cash and cash equivalents of $56 million compared with $44 million at the end of the prior quarter. Long-term debt was $1.5 billion compared with $1.7 billion in the prior quarter.
SRCL generated $157.1 million of net cash from operating activities while capex was $26.2 million in the quarter. Free cash flow came in at $130.9 million in the reported quarter.
2023 Outlook
Stericycle expects 3-5% revenue growth organically. The company expects free cash flow to be between $175 million and $205 million. It anticipates capital expenditures between $125 million and $145 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.
Performances of Some Other Business Services Companies
Robert Half International Inc. RHI reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. ADP reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter.
Booz Allen Hamilton Holding Corp. BAH reported impressive third-quarter fiscal 2023 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Stericycle, Inc. (SRCL) : Free Stock Analysis Report
Robert Half International Inc. (RHI) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis 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.