The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Stericycle met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, and net margins increased.
Stericycle chalked up revenue of $446.6 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $443.5 million. Sales were 13% higher than the prior-year quarter's $393.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.76. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.73 per share on the same basis. GAAP EPS of $0.74 for Q4 were 30% higher than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 45.1%, 390 basis points worse than the prior-year quarter. Operating margin was 26.2%, 100 basis points worse than the prior-year quarter. Net margin was 14.4%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $456.0 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $1.87 billion. The average EPS estimate is $3.21.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 277 members out of 300 rating the stock outperform, and 23 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 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 $92.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Stericycle. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.