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Stericycle's (SRCL) Q2 Earnings Miss Estimates, Revenues Top

Zacks Equity Research
·4-min read

Stericycle, Inc. SRCL reported mixed second-quarter 2021 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.

Adjusted earnings per share of 67 cents missed the Zacks Consensus Estimate by 1.5% but increased 45.7% year over year. The upside can be attributed to higher adjusted income from operations, favorable tax rate, lower interest expenses and net favorable impact from foreign exchange rates.

Revenues of $672.7 million beat the consensus mark by 1% and grew 12.5% year over year on the back of favorable impact of the ongoing economic recovery from COVID-19 and quality of revenue initiatives. These were partially offset by the impact of divestitures.

Over the past year, shares of Stericycle have gained 2.9% compared with 13.1% rise of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


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Let’s check out the numbers in detail.

Revenues by Service

Regulated Waste and Compliance Services revenues increased 3.9% year over year on a reported basis and 7.6% on an organic basis to $463 million. The segment contributed 69% of total revenues.

Secure Information Destruction revenues improved 37.5% year over year on a reported basis and 34.2% organically to $209.7 million. The segment contributed 31% of total revenues.

Revenues by Geography

Revenues from North America were $542.6 million, up 10.4% year over year on a reported basis and 13% organically. International revenues of $130.1 million increased 21.7% year over year on a reported basis and 20.6% organically.

Profitability Performance

Adjusted gross profit in the reported quarter amounted to $269.1 million, up 13.8% from the year-ago quarter. Adjusted gross profit margin was 40%, up from 39.5% in the prior-year quarter.

Adjusted operating income was $105.7 million, up 23.9% from the year-ago quarter. Adjusted operating income margin was 15.7%, up from 14.3% in the prior-year quarter.

Adjusted EBITDA was $130.4 million, up 14.7% from the year-ago quarter. Adjusted EBITDA margin was 19.4%, up from 19% in the prior-year quarter.

Stericycle, Inc. Price, Consensus and EPS Surprise

Stericycle, Inc. price-consensus-eps-surprise-chart | Stericycle, Inc. Quote

Balance Sheet & Cash Flow

Stericycle exited second-quarter 2021 with cash and cash equivalents of $61.7 million compared with $50 million at the end of the prior quarter. Long-term debt was $1.60 billion compared with $1.65 billion at the end of the prior quarter.

The company generated $87.2 million of net cash from operating activities and capex was $35 million in the quarter. Free cash flow came in at $52.2 million in the quarter.

Currently, Stericycle carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax’s EFX second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.

Robert Half’s RHI second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.

ManpowerGroup’s MAN second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.


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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Stericycle, Inc. (SRCL) : Free Stock Analysis Report

Robert Half International Inc. (RHI) : Free Stock Analysis Report

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