Stericycle, Inc.‘s (SRCL - Free Report) fourth-quarter 2021 earnings and revenues missed the Zacks Consensus Estimate. The stock gained 3.2% since the earnings release on Feb 24 despite disappointing results.
Quarterly EPS of 38 cents missed the Zacks Consensus Estimate by 13.6% and declined 35.6% year over year. The downside was due to higher supply chain, labor and other inflationary costs, as well as higher ongoing IT operating expenditures, and legal and self-insurance claim expenses.
Revenues of $657.3 million also missed the consensus mark by 0.4% but moved up slightly year over year on the back of higher Regulated Waste and Compliance Services revenues. Organic revenues increased 3.5% year over year.
In the past year, shares of Stericycle have lost 13.1% compared with 12.7% decline of the industry it belongs to.
Revenues by Service
Regulated Waste and Compliance Services revenues decreased 2.7% year over year on a reported basis but increased 1.9% on an organic basis to $455.7 million. The segment contributed 69.3% to total revenues.
Secure Information Destruction revenues increased 7.6% year over year on a reported basis and 7.4% organically to $201.6 million. The segment contributed 30.7% to total revenues.
Revenues by Geography
Revenues from North America were $536.3 million, up 1.9% year over year on a reported basis and 4.1% organically. International revenues of $121 million declined 6.7% year over year on a reported basis while organic decline was marginal.
Profitability Performance
Adjusted gross profit in the quarter amounted to $247 million, down 8.3% from the year-ago quarter’s level. Adjusted gross profit margin was 37.6%, down from 41.1% in the prior-year quarter.
Adjusted EBITDA was $92.3 million, down 30.9% from the year-ago quarter’s figure. Adjusted EBITDA margin was 14%, down from 20.4% in the prior-year quarter.
Adjusted operating income was $64.2 million, down 40.9% from the year-ago quarter’s levels. Adjusted operating income margin was 9.8%, down from 16.6% in the prior-year quarter.
Balance Sheet & Cash Flow
Stericycle exited the reported quarter with cash and cash equivalents of $55.6 million compared with $37.5 million at the end of the prior quarter. Long-term debt was $1.6 billion, flat with the prior quarter.
The company generated $100.9 million of net cash from operating activities and capex was $31.1 million in the quarter. Free cash flow came in at $69.8 million in the quarter.
2022 Outlook
For 2022, the company anticipates organic revenue growth of 3% to 5%. Adjusted EPS is expected in the range of $2-$2.3, the midpoint ($2.15) of which is lower than the current Zacks Consensus Estimate of $2.29. The company expects capital expenditures in the range of $120-$140 million, and free cash flow to be $125-$155 million.
Currently, Stericycle carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Stericycle, Inc.‘s (SRCL - Free Report) fourth-quarter 2021 earnings and revenues missed the Zacks Consensus Estimate. The stock gained 3.2% since the earnings release on Feb 24 despite disappointing results.
Quarterly EPS of 38 cents missed the Zacks Consensus Estimate by 13.6% and declined 35.6% year over year. The downside was due to higher supply chain, labor and other inflationary costs, as well as higher ongoing IT operating expenditures, and legal and self-insurance claim expenses.
Revenues of $657.3 million also missed the consensus mark by 0.4% but moved up slightly year over year on the back of higher Regulated Waste and Compliance Services revenues. Organic revenues increased 3.5% year over year.
In the past year, shares of Stericycle have lost 13.1% compared with 12.7% decline of the industry it belongs to.
Revenues by Service
Regulated Waste and Compliance Services revenues decreased 2.7% year over year on a reported basis but increased 1.9% on an organic basis to $455.7 million. The segment contributed 69.3% to total revenues.
Secure Information Destruction revenues increased 7.6% year over year on a reported basis and 7.4% organically to $201.6 million. The segment contributed 30.7% to total revenues.
Revenues by Geography
Revenues from North America were $536.3 million, up 1.9% year over year on a reported basis and 4.1% organically. International revenues of $121 million declined 6.7% year over year on a reported basis while organic decline was marginal.
Profitability Performance
Adjusted gross profit in the quarter amounted to $247 million, down 8.3% from the year-ago quarter’s level. Adjusted gross profit margin was 37.6%, down from 41.1% in the prior-year quarter.
Adjusted EBITDA was $92.3 million, down 30.9% from the year-ago quarter’s figure. Adjusted EBITDA margin was 14%, down from 20.4% in the prior-year quarter.
Adjusted operating income was $64.2 million, down 40.9% from the year-ago quarter’s levels. Adjusted operating income margin was 9.8%, down from 16.6% in the prior-year quarter.
Balance Sheet & Cash Flow
Stericycle exited the reported quarter with cash and cash equivalents of $55.6 million compared with $37.5 million at the end of the prior quarter. Long-term debt was $1.6 billion, flat with the prior quarter.
The company generated $100.9 million of net cash from operating activities and capex was $31.1 million in the quarter. Free cash flow came in at $69.8 million in the quarter.
2022 Outlook
For 2022, the company anticipates organic revenue growth of 3% to 5%. Adjusted EPS is expected in the range of $2-$2.3, the midpoint ($2.15) of which is lower than the current Zacks Consensus Estimate of $2.29. The company expects capital expenditures in the range of $120-$140 million, and free cash flow to be $125-$155 million.
Currently, Stericycle carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ADP - FREE
Get the latest research report on SRCL - FREE
Get the latest research report on RHI - FREE
Get the latest research report on ROL - FREE