Stericycle (SRCL) to Post Q4 Earnings: What's in the Cards?

Zacks Equity Research

Stericycle, Inc. SRCL is slated to report fourth-quarter2018 results on Feb 28, after the bell. In the last reported quarter, the company delivered positive earnings surprise of 1.98%.

How Things are Shaping up for the Announcement?

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $848.8 million, reflecting year-over-year decline of 4.4%. The fall is likely to be due to a decline in small quantity medical waste business combined with continued softness in Communication and Related Services, and divestitures. Strength in Secure Information Destruction and other core services are expected to partially offset the downside.

Moreover, reduced profitability in Communication and Related Services is likely to hurt earnings. The Zacks Consensus Estimate for earnings is pegged at 95 cents, mirroring year-over-year decline of 5%.

What Our Model Says?

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Stericycle has an Earnings ESP of +3.04% and a Zacks Rank #3, which indicates earnings beat.

Other Stocks to Consider

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these also have the right combination of elements to beat estimates.

Advanced Disposal Services ADSW has an Earnings ESP of +16.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Interpublic IPG has an Earnings ESP of +27.27% and a Zacks Rank #3.

Republic Services RSG has an Earnings ESP of +0.33% and a Zacks Rank #3.

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