Stericycle (NSDQ:SRCL) shares have fallen in after hours trading after the sterilization-focused medtech company posting first quarter earnings that missed both earnings per share and sales consensus.
The Lake Forest, Ill.-based company posted losses of $37.6 million, or 42¢ per share, on sales of $830.1 million for the three months ended March 31, seeing a swing into the red on the bottom line while sales shrunk 7.3% compared with the same period during the previous year.
Adjusted to exclude one-time items, earnings per share were 57¢, well behind the 87¢ consensus on Wall Street. Analysts also expected the company to post sales of $865.2 million, which the company missed by more than $30 million.
“Revenues for the first quarter of 2019 reflect year-over-year foreign exchange impact and expected softness in recall activity. Our operational and financial performance remains steady when considering significant weather impacts. Given our performance, we remain confident in our guidance for 2019. We will complete the build phase of our ERP this month and have moved into the test and train phases, positioning us well for our 2020 implementation. Additionally, following today’s announcement regarding the appointment of a new CFO and two key executives, Stericycle’s new leadership team is complete, and we are focused on driving long-term shareholder value,” CEO Cindy Miller said in a press release.
Stericycle shares closed up 0.5% today at $57.25. Shares have fallen approximately 11% in after-hours trading, at $51 as of 4:39 p.m. EDT.
Last December, Stericycle agreed to a tentative settlement with investors who brought a putative class action against it over allegedly fraudulent business practices.