Stericycle, Inc. reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The stock has gained 2% since the release of results in response to the better-than-expected earnings performance and impressive guidance.

For 2024, Stericycle expects adjusted EPS to be between $2.2 and $2.5, the midpoint ($2.35) of which is above the current Zacks Consensus estimate of $2.32.

SRCL’s quarterly adjusted EPS came in at 57 cents, which surpassed the consensus estimate by 5.6% and increased 16.3% on a year-over-year basis. Revenues of $665 million missed the consensus mark by 1.6% and declined 2.8% year over year.

Segmental Revenues

Regulated Waste and Compliance Services revenues declined marginally year over year but increased 2.1% on an organic basis to $447.8 million, staying higher than our estimated $443.4 million. Secure Information Destruction revenues decreased 6.8% from the year-ago quarter and 6.3% on an organic basis to $217.1 million, staying lower than our estimate of $229.1 million.

Revenues by Geography

Revenues from North America were $569.2 million, lower than our estimate of $570.9 million, down marginally on a reported basis as well as organically. International revenues of $95.7 million declined 13.7% from the year-ago quarter on a reported basis and marginally on an organic basis and came lower than our expectation of $101.7 million.

Profitability Performance

Adjusted EBITDA was $116.2 million, up 4.4% from the year-ago quarter’s figure. Adjusted EBITDA margin was 17.5%, up 120 basis points from the year-ago quarter.

Balance Sheet & Cash Flow

Stericycle exited the quarter with cash and cash equivalents of $31 million compared with $35.3 million at the end of the prior quarter. Long-term debt was $1.4 billion compared with $1.3 billion in the preceding quarter. SRCL used $54.5 million of net cash in operating activities, while capex was $43.1 million.

2024 Guidance

The company expects 3-5% revenue growth organically. Stericycle expects free cash flow to be between $210 million and $265 million. It anticipates capital expenditures between $140 million and $160 million.

Currently, Stericycle carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots of Some Service Providers

Omnicom (OMC Quick QuoteOMC - Free Report) reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.

Equifax (EFX Quick QuoteEFX - Free Report) reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.

EFX’s adjusted earnings were $1.5 per share, which beat the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.

ManpowerGroup (MAN Quick QuoteMAN - Free Report) reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.