The 10-second takeaway
For the quarter ended March 31 (Q1), Stericycle met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share increased. GAAP earnings per share expanded.
Gross margins shrank, operating margins were steady, net margins grew.
Stericycle booked revenue of $513.8 million. The 12 analysts polled by S&P Capital IQ anticipated sales of $520.1 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $460.1 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 averaged $0.88 per share. Non-GAAP EPS of $0.88 for Q1 were 13% higher than the prior-year quarter's $0.78 per share. GAAP EPS of $0.85 for Q1 were 13% higher than the prior-year quarter's $0.75 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 45.2%, 170 basis points worse than the prior-year quarter. Operating margin was 26.2%, much about the same as the prior-year quarter. Net margin was 14.5%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $530.9 million. On the bottom line, the average EPS estimate is $0.91.
Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $3.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 298 members out of 326 rating the stock outperform, and 28 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 86 give Stericycle a green thumbs-up, and nine 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 $106.38.
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