Stericycle says 3Q profit increased 19 percent

Stericycle says margins and revenue improved in the 3rd quarter, leading to greater profit

• On 5:01 pm EDT, Tuesday October 27, 2009

LAKE FOREST, Ill. (AP) -- Stericycle Inc., which manages and disposes of medical waste, said Tuesday its profit rose 19 percent in the third quarter as revenue picked up and margins expanded.

Stericycle said its profit grew to $46.5 million, or 54 cents per share, from $39.2 million, or 34 cents per share a year earlier. Excluding one-time costs and gains, it said its profit was 55 cents per share. Revenue increased 7 percent, to $297.8 million from $277.1 million.

According to a Thomson Reuters survey, analysts expected a profit of 53 cents per share and $300.6 million in revenue, on average. In aftermarket trading, Stericycle shares were unchanged at $53.35.

The company's cost of revenue edged up about 2 percent, and other expenses held relatively steady compared to the increase in revenue. That left the company with bigger profit margins.

Stericycle said unfavorable foreign currency exchanges reduced its revenue by $40.6 million. If exchange rates had stayed the same, revenue would have grown by about 12 percent.