Today’s Research Reports on Stocks to Watch: Tesaro and Stericycle
NEW YORK, NY / ACCESSWIRE / August 6, 2018 / Medical companies Tesaro and Stericycle reported second quarter results last week that sent both stocks tumbling into the red. Both companies lowered their guidance looking forward.
RDI Initiates Coverage on:
Tesaro, Inc.
https://www.rdinvesting.com/report/?ticker=TSRO
Stericycle, Inc.
https://www.rdinvesting.com/report/?ticker=SRCL
Tesaro, Inc. shares closed down 23.55% on about 14.3 million shares traded on Friday. Trading volume was roughly seven times higher than usual for the company after it reported a larger-than-expected second-quarter loss and revenue miss. This along with a downbeat 2018 guidance sparked concerns on Wall Street. On Thursday, Tesaro reported after the close that it had a loss of $166.65 million, or a loss of $3.04 per share, in the second quarter. Analysts had been expecting earnings per share of a loss of $2.63. Revenue at $57.21 million was also below the $65.5 million that analysts were waiting for. Looking ahead, the company has also lowered its guidance for 2018 revenue to a range of $250 million to $265 million. Previously the company had expected a range of $310 million to $345 million. Analysts had been expecting $263.6 million. Zejula, a treatment for women with some types of ovarian, fallopian tube, or peritoneal cancer, had its revenue guidance lowered from $255 million to $275 million to $225 million to $235 million. Analysts were expecting $234.9 million. RBC Capital Markets analyst Kennen MacKay noted, "we come away from the quarter concerned about US Zejula sustainability with detail surrounding Zejula's geographic split suggestive of a US Zejula Q/Q decline in Q1:18 which was offset by geographic expansion related to the EU launch." The firm cut its price target on the stock to $38, and maintained a sector perform rating.
Access RDI's Tesaro, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=TSRO
Stericycle, Inc. shares closed down 13.13% on about 3.6 million shares traded on Friday. The medical waste disposal and secure information destruction specialist saw its shares sink after reporting dismal second quarter results and a lowered full-year forecast. For the second quarter, the company reported $888.3 million in revenue, falling $14.6 million short of what analysts had been expecting. 106.1 million, or $1.17 per share, of adjusted net income, beat analysts' expectations by $0.03 per share. Stericyle reduced its full-year guidance and expects revenue in the range of $3.45 billion to $3.54 billion. Previously the company had expected $3.5 billion to $3.64 billion. Now the company anticipates adjusted earnings of between $4.35 to $4.55 per share, compared to previous guidance of $4.45 to $4.85 per share this year. CEO Charlie Alutto commented, "Our second quarter results demonstrate the underlying strength of our core businesses and reflect the early benefits of our Business Transformation and its overall value to the Company. Our core businesses performed well with Regulated Waste and Compliance Services meeting expectations and higher paper prices contributing to the performance of Secure Information Destruction. We delivered Adjusted EBITDA and Adjusted EPS within guidance by effectively controlling our expenses, offsetting weaker CRS results. Our team remains focused on the Business Transformation, and we are on track to achieve our goals for the year."
Access RDI's Stericycle, Inc. Research Report at:
https://www.rdinvesting.com/report/?ticker=SRCL
Our Actionable Research on Tesaro, Inc. (NASDAQ: TSRO) and Stericycle, Inc. (NASDAQ: SRCL) can be downloaded free of charge at Research Driven Investing.
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SOURCE: RDInvesting.com
