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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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. The Motley Fool recommends 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.