NEW YORK (TheStreet) -- Shares of Stericycle (SRCL - Get Report) are tumbling 16.34% to $88.62 on heavy trading volume late Friday morning after the Lake Forest, IL-based company reported lower-than-expected revenue for the 2016 second quarter and provided a downbeat outlook.
After yesterday's market close, the medical waste management company posted revenue of $891.6 million, below analysts' projections of $912.8 million.
Adjusted earnings of $1.18 per share were in line with analysts' estimates.
For 2016, Stericycle sees earnings per share between $4.68 and $4.75 on revenue of $3.56 billion to $3.66 billion, the Fly noted. Analysts are modeling earnings of $4.93 per share on revenue of $3.65 billion.
The stock was also downgraded to "underperform" from "in-line" at Imperial Capital following the results, the Fly reports. The firm also cut its price target on shares to $93.50 from $100.
Imperial would like to see a reacceleration in earnings growth and improvement in visibility before becoming more positive on shares.
About 6.18 million of the company's shares were traded so far today compared to its average volume of 751,099 shares per day.
Separately, TheStreet Ratings Team has a Hold rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations.
But the team also finds weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.
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