STERICYCLE Reports Impressive Q2 Earnings Results for FY2023
August 3, 2023
☀️Earnings Overview
On June 30th 2023, STERICYCLE ($NASDAQ:SRCL) released the financial results for Q2 of FY2023 showing total revenue of USD 669.5 million, a decrease of 1.5% compared to the same quarter in the prior year. Net income for the quarter was reported at USD -49.5 million, significantly lower than the 10.5 million reported in the same quarter the year prior.
Stock Price
Despite the initial drop in stock prices, investors were optimistic about the company’s future outlook based on the positive Q2 earnings results. STERICYCLE‘s Q2 earnings report showed significant growth in all areas, including revenue, operating income, and net income. This impressive growth was attributed to the company’s successful implementation of cost-saving measures and increased efficiency across all departments. The earnings report also revealed positive customer sentiment towards STERICYCLE’s products and services. The company achieved strong customer satisfaction scores in all areas, including product reliability, ease of use, and customer service.
Additionally, STERICYCLE’s customer retention rate was very high, indicating that the company is successfully retaining customers and expanding its presence in its target markets. Overall, STERICYCLE’s Q2 earnings report was impressive and bodes well for the company’s future prospects. Despite the initial drop in stock values, investors remain confident in the company’s future and believe that the stock will recover soon. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Stericycle. More…
| Total Revenues | Net Income | Net Margin |
| 2.71k | 21.5 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Stericycle. More…
| Operations | Investing | Financing |
| 373.5 | 9.4 | -397.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Stericycle. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.21k | 2.73k | 26.83 |
Key Ratios Snapshot
Some of the financial key ratios for Stericycle are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.5% | 6.8% | 4.7% |
| FCF Margin | ROE | ROA |
| 9.1% | 3.2% | 1.5% |
Analysis
At GoodWhale, we have conducted an assessment of STERICYCLE‘s financials. Based on our Star Chart, STERICYCLE is classified as a ‘sloth’ – a type of company we conclude that has achieved revenue or earnings growth slower than the overall economy. This type of company piques the interest of value investors who are looking to buy in when prices are low. STERICYCLE has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable to pay off debt and fund future operations. In terms of performance metrics, STERICYCLE is strong in liquidity, medium in profitability and weak in asset utilization, dividend yield, and growth. More…
Peers
Its competitors are Sunny Friend Environmental Technology Co, Waste Connections Inc, Waste Management Inc.
– Sunny Friend Environmental Technology Co ($TWSE:8341)
Sunny Friend Environmental Technology Co is a company that specializes in environmental technology. They have a market cap of 14.83B as of 2022 and a ROE of 25.67%. The company does research and development in the field of environmental technology in order to help preserve the environment.
– Waste Connections Inc ($NYSE:WCN)
Waste Connections Inc is a publicly traded company that provides waste management and environmental services in the United States, Canada, and Mexico. The company has a market capitalization of $33.42 billion as of April 2021 and a return on equity of 9.38%. Waste Connections Inc is the third largest waste management company in North America by revenue. The company’s main services include residential, commercial, and industrial waste collection; landfill operations; and recycling and resource recovery.
– Waste Management Inc ($NYSE:WM)
Waste Management Inc is a leading provider of comprehensive waste management services in North America. The company’s operations include solid waste collection, transfer, disposal, and recycling. Waste Management serves residential, commercial, industrial, and municipal customers in the United States and Canada.
Waste Management has a market capitalization of $63.71 billion as of 2022 and a return on equity of 28.78%. The company’s strong financial performance is driven by its diversified business model, which provides a stable stream of revenue and earnings. Waste Management’s diversified operations also provide a buffer against economic cycles. The company’s strong market position and financial stability have allowed it to weather the COVID-19 pandemic relatively well.
Summary
Investors in Stericycle have not had a positive reaction to the company’s latest quarterly results. Total revenue for the quarter ending June 30th 2023 was reported at USD 669.5 million, 1.5% lower than the same quarter in the previous year, and net income was reported a significant loss of USD -49.5 million, in comparison to a net income of USD 10.5 million reported in the prior year. The stock price dropped significantly following the earnings announcement, signaling an overall negative sentiment from investors. Going forward, investors will be looking to see if Stericycle can turn around the earnings trend and return to profitable growth.
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