Stericycle Stock Falls After Missing Q2 EPS Estimates

Stericycle Inc SRCL reported second-quarter revenue growth of 12.5% year-over-year to $672.7 million, +14.4% on an organic basis, beating the consensus of $669.43 million.
Revenue by services: Regulated Waste and Compliance $463 million (+3.9% Y/Y), and Secure Information Destruction $209.7 million (+37.5% Y/Y).
Adjusted EPS improved to $0.67 from $0.46 in 2Q20, missed the consensus of $0.69.
Gross profit improved 17.2% to $269.1 million and the gross margin expanded by 160 bps to 40%.
Adjusted income from operations increased by 23.9% Y/Y to $105.7 million, and the margin expanded by 140 bps to 15.7%.
Stericycle generated cash from operating activities year-to-date of $149.8 million, compared to $207.3 million a year ago. Free cash flow of $90.1 million.
Adjusted EBITDA increased by 14.7% Y/Y to $130.4 million, and margin expanded by 40 bps to 19.4%.
The company reduced its net debt by $52.4 million in the quarter, decreasing total net debt to ~$1.65 billion.
Price Action: SRCL shares traded lower by 3.96% at $67.63 on the last check Friday.