Stericycle (SRCL) Reports Earnings Tomorrow: What To Expect

Waste and information destruction company Stericycle (NASDAQ:SRCL) is expected to be reporting earnings tomorrow before market hours. Here’s what to look for.

Stericycle missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $664.9 million, down 2.8% year on year. It was a weak quarter for the company, with a miss of analysts’ organic revenue estimates.

Is Stericycle a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Stericycle’s revenue to decline 1.2% year on year to $671.5 million, in line with the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stericycle has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Stericycle’s peers in the waste management segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Clean Harbors delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 1.5%, and Republic Services reported revenues up 8.6%, in line with consensus estimates. Clean Harbors traded up 8% following the results while Republic Services was down 5.2%.

Read our full analysis of Clean Harbors’s results here and Republic Services’s results here.

Inflation fears have put pressure on growth stocks, and while some of the waste management stocks have fared somewhat better, they have not been spared, with share prices down 4.8% on average over the last month. Stericycle’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $61.8 (compared to the current share price of $58.91).

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