NEW YORK (TheStreet) -- Shares of Stericycle(SRCL) - Get Report are tumbling by 21.94% to $95.03 on heavy trading volume late Friday morning, after the company posted weaker-than-expected earnings for the 2016 first quarter.
After yesterday's market close, the Lake Forest, IL-based medical waste management company reported adjusted earnings of $1.11 per diluted share, missing analysts' estimates of $1.15 per share.
Revenue came in at $874.2 million, which beat analysts' expectations of $870.5 million.
Additionally, RBC Capital Markets downgraded the stock to "underperform" from "sector perform" and cut its price target to $96 from $119 this morning.
"We find the risk-reward poor after a string of weak results call into question management's capabilities and prove the business is no longer the predictable, premium grower it has been in the past," the firm wrote in a note.
The company has "badly" missed earnings in three out of five quarters, RBC Capital said.
"The culprits were further deterioration in its hazardous waste unit, cost pressures at international operations, and a delay in achieving cost savings at Shred-it (from the 2014 merger of Shred-it with Cintas's shredding business)," the firm added.
About 4.5 million of the company's shares were traded so far today compared to its average volume of 905,049 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SRCL