Stericycle (SRCL) Q2 Earnings Miss Estimates, Revenues Beat
Zacks Investment Research | Aug 07, 2019 08:55AM ET
Stericycle, Inc. (NASDAQ:SRCL) reported mixed second-quarter 2019 results with earnings missing the Zacks Consensus Estimate but revenues beating the same.
Adjusted earnings of 56 cents per share lagged the Zacks Consensus Estimate by 27 cents and decreased 52.1% year over year. The decrease was due to lower SOP pricing, pricing pressure in Regulated Waste and Compliance Services (RWCS) and higher operating costs.
Total revenues came in at $845.9 million, which beat the consensus mark by roughly $2 million but declined 4.2% year over year on a reported basis and 0.8% on an organic basis.
Effects of foreign exchange rates and SOP pricing reduced revenues by $20.6 million and $8.7 million, respectively. Previously, closed divestitures net of acquisitions reduced revenues by $10.6 million. Organic growth in Secure Information Destruction and RWCS was offset by lower SOP pricing. Communications and Related Services revenue was negatively impacted by fewer recall events.
The company continued its progress with business transformation in the quarter and completed the primary development of the enterprise resource planning (ERP). It is progressing well with readiness activities.
Shares of Stericycle gained 18.7% year to date, underperforming the 19.8% rally of the Original post
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