Stericycle up 6% post Q1 results; withdraws FY20 guidance

Stericycle (SRCL +6.2%) reported revenue decline of 5.4% Y/Y to $785M, and organic increase of 2.4% Y/Y.

Revenue by services: Regulated Waste and Compliance $ 467.3M (-0.4% Y/Y); Secure Information Destruction $ 218.1M (-6% Y/Y); Communication and Related $ 33.6M (-45.1% Y/Y); and Manufacturing and Industrial $66M (-2.5% Y/Y).

Revenue by segments: North America $627.5M (-0.6% Y/Y); International $130.4M (-12.2% Y/Y); and Others $27.1M (-4 5.8Y/Y).

Q1 Gross margin improved by 70 bps to 36.5%.

Loss from operations expanded to $30.4M for the quarter, compared to $4.2M a year ago.

Cash flow from operations was $82.1M, compared to $36.2M a year ago.  Free Cash Flow was $42.5M, compared to an outflow of $29.9M a year ago.

Company witnessed business impact of the economic shut-down due to COVID-19 during March, primarily in their secure information destruction services.

Stericycle has withdrawn its FY20 financial guidance, due to uncertainties caused by COVID-19 pandemic.

Previously: Raymond James likes Amgen in premarket analyst action (March 30)

Previously: Stericycle EPS misses by $0.08, misses on revenue (May 7)

https://seekingalpha.com/news/3571385-stericycle-up-6-post-q1-results-withdraws-fy20-guidance