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Stericycle: S&P 500’s Top Losers on February 22

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Top losers

The S&P 500’s top losers on February 22 were:

  • Stericycle (SRCL) fell 19.1%.
  • Apache (APA) fell 6.3%.
  • Synopsys (SNPS) fell 4.6%.
  • Brighthouse Financial (BHF) fell 4%.
  • LKQ (LKQ) fell 3.7%.
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Stericycle 

Stericycle is a company that collects and disposes of medical waste and sharps, pharmaceuticals, and hazardous waste. Stericycle was the S&P 500’s the top loser on February 22. After regaining strength and rebounding higher last week, Stericycle opened this week on a weaker note and declined as the week progressed. On Thursday, Stericycle opened the day lower and declined to the lowest levels traded since May 2010.

4Q17 earnings

The selling pressure in Stericycle increased on February 22 after the release of its weaker-than-expected earnings report. According to management, the EPS (earnings per share) in 4Q17 was $0.97 with a net income of $83.3 million—better than the EPS of $0.15 reported in same period of 2016 with a net income of $12.7 million. However, Stericycle’s EPS was less than analysts’ forecast of $1.14. Stericycle’s revenues in 4Q17 declined to $887.8 million from $906.4 million reported in the same period in 2016. The weaker-than-expected EPS weighed on the stock on Thursday.

Outlook

Regarding the 2018 outlook, management expects the EPS to be $4.45–$4.85. The fiscal revenues are expected to be $3.48 billion–$3.63 billion. Analysts expect the EPS to be $4.67 with a revenue of $3.64 billion in 2018. On Thursday, Stericycle declined 19.1% and closed the day at $60.63. Stericycle is part of the S&P 500 industrials sector, which gained 0.59% on February 22.

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