The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stericycle beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Gross margins were steady, operating margins expanded, net margins shrank.
Stericycle notched revenue of $503.6 million. The 13 analysts polled by S&P Capital IQ predicted a top line of $491.1 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $446.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.88. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.86 per share. GAAP EPS of $0.80 for Q4 were 8.1% higher than the prior-year quarter's $0.74 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 47.5%, about the same as the prior-year quarter. Operating margin was 26.1%, 10 basis points better than the prior-year quarter. Net margin was 13.9%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $508.2 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $2.08 billion. The average EPS estimate is $3.67.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 299 members out of 324 rating the stock outperform, and 25 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Stericycle a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stericycle is outperform, with an average price target of $98.27.
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