Stericycle Inc. (SRCL) reported fourth quarter earnings of 55 cents in the third quarter, in line with the Zacks Consensus Estimate and up 22% from 45 cents reported in the fourth quarter of 2008. 

Quarterly revenue increased 14.4% to $313.5 million, compared to $274.0 million in the same period a year ago. Excluding the favorable foreign exchange impact, quarterly sales were up 13.5% compared to the fourth quarter of 2008. Around 9.5% of this growth was driven by acquisitions. 

In addition to a large percentage of growth being fueled by acquisitions, Stericycle also posted healthy internal growth figures in both domestic and international operations. Internal growth from the international segment, excluding the impact of foreign currency translation, was 5% during the quarter. 

In the domestic operations, the company witnessed an internal revenue growth of 8% for small-account customers and 3% for large-account customers. Bio Systems remains the key product offering for the large account customers, while the small account growth is primarily driven by the company’s Steri-Safe product offering.
 
For the full year, Stericycle reported earnings of $2.09 per share on revenues of $1.18 billion, compared to earnings of $1.73 per share on revenue of $1.08 billion in 2008. The company generated operating cash flow of approximately $63 million during the quarter and $277 million in the full year 2009. 

A significant portion of Stericycle’s historical growth came from the successful integration of acquisitions in both domestic and international markets. The company completed two domestic and four international acquisitions during the fourth quarter. The company said that the incremental revenue impact of these acquisitions was approximately $6.3 million in the fourth quarter of 2009. It expects annualized revenues of these six acquisitions to be approximately $59.9 million.
 
Management estimates EPS in the range of $2.34–$2.40 on revenue expectations of $1.32– $1.35 billion for full year 2010. Also, the company forecasts free cash flow of $245 million to $255 million for the year.
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