Health and Healthcare

How Analysts View Stericycle After Earnings

Chris Lange

Published: April 29, 2016 11:20 am

Last Updated: January 13, 2020 10:06 am

Stericycle Inc. (NASDAQ: SRCL) reported its first-quarter financial results after the markets closed on Thursday. Unfortunately, the results missed earnings expectations and the stock saw a new 52-week low early in Friday’s session. As a result, a few analysts poured into the stock.

The company said it had $1.11 in earnings per share (EPS) on $874 million in revenue, compared to consensus estimates of $1.15 in EPS on revenue of $873.6 million. In the same period of last year, it posted EPS of $1.15 and $663.3 million in revenue.

Cash flow from operations was $156.9 million for the first quarter. On the books, cash, cash equivalents and short-term investments totaled $45.72 million, compared to $55.70 million at the end of 2015.

So far in 2016, Stericycle has performed relatively flat, with shares up about 1% year to date, prior to Friday’s move. Over the past 52 weeks, the stock is down 9%.

A few analysts weighed in on the stock just after the earnings report:

• Stifel downgraded it to a Hold rating from Buy.
• RBC Capital Markets downgraded it to Underperform from Sector Perform and lowered its price target to $96 from $119.
• Jefferies maintained a Buy rating but the price target was lowered to $140 from $146.
• Baird has a Neutral rating and lowered its price target to $115 from $129.
• Goldman Sachs has a Neutral rating and lowered its price target from $127 to $111.
• Raymond James downgraded it to Market Perform from Outperform.
• Stifel downgraded it to a Hold rating from Buy.

Shares of Stericycle were trading down more than 20% at $96.74 on Friday, with a consensus analyst price target of $137.55 and a 52-week trading range of $91.05 to $151.57.