How Analysts View Stericycle After Earnings
Stericycle first-quarter financial results missed earnings expectations and the stock saw a new 52-week low early in Friday's session.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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%.
[nativounit]
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.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
