Stericycle Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Stericycle Inc (NASDAQ:SRCL) will unveil its latest earnings on Wednesday, October 24, 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 estimate of analysts is for net income of 83 cents per share, a rise of 16.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 82 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 83 cents during the last month. Analysts are projecting profit to rise by 15.1% compared to last year’s $3.27.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 81 cents per share against a mean estimate of net income of 80 cents per share.

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A Look Back: In the second quarter, profit rose 21.7% to $67.6 million (78 cents a share) from $55.5 million (63 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.3% to $468.9 million from $410.4 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 13.4% in revenue from the year-earlier quarter to $477.4 million.

Stock Price Performance: Between October 12, 2012 and October 18, 2012, the stock price rose $3.62 (4%), from $89.99 to $93.61. The stock price saw one of its best stretches over the last year between September 27, 2012 and October 4, 2012, when shares rose for six straight days, increasing 2.3% (+$2.03) over that span. It saw one of its worst periods between February 23, 2012 and March 2, 2012 when shares fell for seven straight days, dropping 3.7% (-$3.33) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 14.8% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 28.6% in the fourth quarter of the last fiscal year and 16.5% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.44 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.

Analyst Ratings: With nine 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.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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