Stericycle Reports Solid Organic Sales Growth, Announces an Acquisition, and Provides 2022 Guidance

We've maintained our $59 per share fair value estimate following Stericycle's fourth-quarter 2021 earnings release. Stericycle reported solid organic revenue growth (3.5%), but inflationary headwinds and ongoing enterprise resource planning spending weighed on the firm's adjusted operating margin, which contracted 680 basis points to 9.8%. Nevertheless, Stericycle's fourth-quarter revenue ($657.3 million) and adjusted EPS ($0.38) were not far from our forecast ($671.8 million and $0.41, respectively).