Sharps Compliance Stock Slips On Q4 Results

Sharps Compliance Corp. SMED reported a fourth-quarter sales growth of 49.1% year-over-year to $18.7 million, misses the analyst consensus of $23.54 million.
Customer billings increased by 38% Y/Y to $18.7 million. Professional market billings increased 44% Y/Y to $4.7 million, and Retail market billings grew 68% Y/Y to $9 million.
Mailback billings grew 68% Y/Y to $12 million, driven by solid immunization-related orders.
EPS improved to $0.29 from $0.13 in 4Q20, versus the consensus of $0.20.
Sharps Compliance recorded a gain in Q4, related to forgiveness on a $2.2 million PPP Loan; excluding this gain, adjusted EPS would have been $0.17 for the quarter.
The gross margin expanded by ten bps to 33.4%.
The operating income increased to $1.99 million from $0.65 million a year ago, and the margin expanded by 540 bps to 10.6%.
Adjusted EBITDA increased to $2.54 million from $0.953 million in 4Q20.
The company’s cash balance as of June 30, 2021, stood at $27.8 million.
Price Action: SMED shares are trading lower by 3.77% at $9.19 on the last check Wednesday.