Stericycle (NASDAQ: SRCL) reported Q3 EPS of $1.03, $0.02 better than the analyst estimate of $1.01. Revenue for the quarter came in at $854.9 million versus the consensus estimate of $856.36 million.

• Revenues of $854.9 million, a decrease of 3.2%, in line with guidance; strength in Secure Information Destruction and other core services was offset by the expected decline in the small quantity (“SQ”) medical waste business, foreign exchange, divestitures, and a further decline in Communication and Related Services (“CRS”)
• Gross profit of $335.5 million, a decrease of 8.9%, inclusive of certain adjusting items; Adjusted gross profit of $343.3 million, a decrease of 6.7%, given the expected decline in the SQ medical waste business, foreign exchange, divestitures, and the further decline in CRS
• Diluted earnings per share (“EPS”) of $0.20, a decrease of 51.2%, due in part to Business Transformation charges and other adjusting items; Adjusted diluted earnings per share (“Adjusted EPS”) of $1.03, a decrease of 6.4%, in line with guidance
• The Business Transformation remains on track and on budget with the completion of the detailed design phase of the planned enterprise resource planning system (“ERP”); Portfolio Rationalization efforts are ongoing

“The fundamentals of our Regulated Waste and Compliance Services and Secure Information Destruction businesses remain strong, as both businesses exceeded our expectations,” said Charles A. Alutto, Chief Executive Officer. “Key trends, including a large aging population and heightened focus on information security, continue to drive growth in our markets. Additionally, our strong leadership position, the benefits of our Business Transformation and the expected efficiencies from our new ERP system will provide Stericycle with a robust long-term growth platform.”

GUIDANCE:

Stericycle sees FY2018 EPS of $4.31-$4.41, versus the consensus of $4.44. Stericycle sees FY2018 revenue of $3.44-3.52 billion, versus the consensus of $3.5 billion.

For earnings history and earnings-related data on Stericycle (SRCL) click here.