S&P 500 (NYSE:SPY) component Stericycle Inc (NASDAQ:SRCL) will unveil its latest earnings on Wednesday, July 25, 2012. Stericycle manages regulated waste and provides related services. It operates in the United States, Canada, Argentina, Chile, Mexico, Ireland, Portugal, Romania and the United Kingdom.
Stericycle Inc Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 80 cents per share, a rise of 15.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 79 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 80 cents during the last month. Analysts are projecting profit to rise by 14.8% compared to last year’s $3.26.
Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 78 cents per share versus a mean estimate of net income of 76 cents per share.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
A Look Back: In the first quarter, profit rose 16.5% to $64.9 million (75 cents a share) from $55.7 million (64 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 15.6% to $460.1 million from $398.1 million.
Wall St. Revenue Expectations: On average, analysts predict $467.7 million in revenue this quarter, a rise of 13.9% from the year-ago quarter. Analysts are forecasting total revenue of $1.89 billion for the year, a rise of 12.5% from last year’s revenue of $1.68 billion.
Stock Price Performance: Between May 22, 2012 and July 19, 2012, the stock price had risen $10.22 (12.2%), from $83.95 to $94.17. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 2.9% (+$2.45) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 13.1% (-$12.16) over that span.
The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 15.8% over the last four quarters.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 4.5% in the third quarter of the last fiscal year and 28.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.28 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.19 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 9.3% to $427.1 million while liabilities rose by 2.1% to $333.8 million.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Additional Hot Stories: