BANNOCKBURN, Ill. - Stericycle, Inc. (NASDAQ: NASDAQ:SRCL) today announced financial results for the first quarter ended March 31, 2024, revealing a revenue shortfall that sent shares down by 2.25%.
The company reported revenues of $664.9 million, a decrease of 2.8% from $684.3 million in the same quarter last year, and below the analyst consensus estimate of $679.48 million. Adjusted earnings per share (EPS) met expectations at $0.57, aligning with the analyst estimate.
The decrease in revenue was primarily attributed to divestitures amounting to $17.7 million, partially offset by favorable foreign exchange rates and an acquisition. Organic revenues in Regulated Waste and Compliance Services (RWCS) saw a growth of 2.1% over the previous year, while Secure Information Destruction (SID) organic revenues declined by 14.4 million, mainly due to lower commodity-indexed revenues.
Despite the revenue decline, Stericycle's net income increased to $13.1 million, or $0.14 diluted earnings per share, up from $11.2 million, or $0.12 per share, in the first quarter of 2023. Adjusted income from operations also saw an improvement, rising to $90.5 million from $84.7 million in the prior-year quarter.
"We are pleased with our first quarter results, which reflect improvement in adjusted EBITDA and adjusted EPS, driven by disciplined execution across our key priorities," said Cindy J. Miller, President and Chief Executive Officer. "We remain on track to achieve our full-year 2024 guidance and long-term outlook."
Cash flow presented challenges, with an outflow of $54.5 million compared to an inflow of $49.5 million in the same period last year. The company cited billing and collection delays from the prior U.S. RWCS ERP launch, higher annual incentive plan payments, and other net working capital changes as contributing factors.
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