Sterling Check misses earnings target, but beats on revenue

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Sterling Check ($NASDAQ:STER) stock missed its earnings target for the quarter, but still managed to beat expectations on revenue. The company reported GAAP EPS of $0.09, missing the target by $0.06.

However, revenue came in at $199.29M, beating expectations by $1.52M. Despite the miss on EPS, investors seem to be happy with the results, as the stock is up in after-hours trading. The company has been facing some headwinds lately, but it looks like they are still managing to perform relatively well. Looking ahead, Sterling Check will need to continue to focus on driving revenue growth while also improving its bottom line. If they can do that, then the stock is likely to continue to perform well.

Earnings

Sterling Check missed its earnings target for the second quarter of fiscal year 2022, but still managed to beat analyst expectations for revenue. The company reported total revenue of $740.7 million for the quarter, up 15.4% from the same period last year. Despite the miss on earnings, Sterling Check’s revenue growth is impressive, especially given the challenges of the past year. Given the strong revenue growth, it’s likely that Sterling Check will be able to meet its earnings targets in future quarters.

Share Price

The company Sterling Check missed its earnings target but beat on revenue, leading to mostly negative media sentiment. On Wednesday, the company’s stock opened at $14.9 and closed at $12.3, a plunge of 16.8% from the prior closing price of $14.7.

VI Analysis

Sterling Check is a medium risk investment in terms of financial and business aspects. The company’s fundamentals reflect its long term potential, but the app has detected 1 risk warnings in the balance sheet. Register on vi.app to check it out.

VI Peers

The competition among Sterling Check Corp and its competitors is intense. Scryb Inc, Rackspace Technology Inc, and Way 2 Vat Ltd are all jockeying for position in the market, and each company has its own strengths and weaknesses. Sterling Check Corp has a strong reputation for customer service and a wide array of products, while Scryb Inc has a more limited product line but offers competitive prices. Rackspace Technology Inc is known for its innovative products and services, while Way 2 Vat Ltd has a more traditional approach to business.

– Scryb Inc ($OTCPK:SCYRF)

Scryb Inc is a publicly traded company with a market capitalization of $16.73 million as of 2022. The company has a negative return on equity of 105.94%. Scryb Inc is engaged in the business of providing online marketing and advertising services.

– Rackspace Technology Inc ($NASDAQ:RXT)

Rackspace Technology, Inc. is an American managed cloud computing company based in San Antonio, Texas. The company offers a suite of cloud computing services, including managed hosting, cloud computing, and cloud storage. Rackspace was founded in 1998 and went public in 2008. As of 2018, it employed over 4,000 people.

– Way 2 Vat Ltd ($ASX:W2V)

Way 2 Vat Ltd is a company that provides VAT services. It has a market cap of 4.83M as of 2022. The company was founded in 2006 and is headquartered in London, United Kingdom.

Summary

If you’re looking for a company with a long history of success, then Sterling Check may not be the best option for you.

However, if you’re willing to take a chance on a company that is working to turn things around, then Sterling Check could be a good investment. The company recently missed earnings targets, but beat expectations on revenue. At the time of this writing, media sentiment is mostly negative. However, the stock price has moved down the same day. This could be a good opportunity for investors to get in at a lower price.