Stericycle (SRCL) Beats On Q1 Earnings, Ups '18 Revenue View
Zacks Investment Research | May 03, 2018 10:37PM ET
Stericycle, Inc. (NASDAQ:SRCL) reported better-than-expected first-quarter 2018 results.
Adjusted earnings of $1.21 per share surpassed the Zacks Consensus Estimate by 17 cents and increased 11% on year-over-year basis. Earnings benefited from strong business performance and U.S. tax reform.
Revenues of $895 beat the consensus mark by $10 million and increased 0.3% year over year. The growth can be attributed to continued strength across Secure Information Destruction and Retail Hazardous Waste and Hospital Compliance Services.
In the quarter, Stericycle closed nine tuck-in acquisitions (all in the domestic market, with eight in Secure Information Destruction and one in Regulated Medical Waste). The deals together contributed about $0.7 million to corporate revenues.
The company is making progress with its Business Transformation initiatives, which it began to execute during the fourth quarter of 2017. The five key initiatives include portfolio rationalization, operational optimization, organizational excellence and efficiency, commercial excellence and strategic sourcing.
The business transformation led to financial savings from organizational restructuring, operational optimization projects and strategic sourcing initiatives; placement of a dedicated internal ERP implementation team and third-party system integrator; development of strategic blueprint for target operating model and initiation of detailed design phase of the enabling technology in the first quarter.
In the quarter, Stericycle achieved $8 million in recurring adjusted EBITDA transformation savings.
We observe that shares of Stericycle have gained 0.9% in the past month against the Original post
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