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Stericycle (SRCL) Q1 Earnings to Reflect SQ Pricing Pressure

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Stericycle, Inc. (SRCL - Free Report) is slated to report first-quarter 2019 results on May 2, after the bell. In the last reported quarter, the company delivered positive earnings surprise of 7.3%.

Shares of the company have gained 58.6% year to date, significantly outperforming the 19.9% rally of the industry it belongs to.

 

How things are shaping up for the announcement

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $866 million,  indicating a decline of  3.2% from the year-ago quarter reported figure. The decline is likely to be due to deterioration in small-quantity medical waste business combined with continued softness in Communication and Related Services, and divestitures. Strength in Secure Information Destruction and other core services is expected to partially offset the downside.

Moreover, weakness in Communication and Related Services and SQ (small quantity) pricing pressure are likely to hurt the bottom line. The Zacks Consensus Estimate for earnings is pegged at 87 cents, implying decline of 28% from the year-ago period reported figure.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Stericycle has an Earnings ESP of -8.73% and a Zacks Rank #4.

Stericycle, Inc. Price and EPS Surprise

 

Stericycle, Inc. Price and EPS Surprise | Stericycle, Inc. Quote

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:

WEX (WEX - Free Report) has an Earnings ESP of +1.78% and a Zacks Rank #2. The company is scheduled to report results on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLEETCOR Technologies has an Earnings ESP of +0.38% and a Zacks Rank #2. The company is scheduled to report results on May 7.

EVERTEC (EVTC - Free Report) has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.

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