(RTTNews) - Waste management service provider Stericycle, Inc. (SRCL: News ) Tuesday reported an increase in third quarter earnings, which topped analysts' estimates, on higher gross margins. The results also reflect a 7.5% growth in revenues helped by contribution from acquisitions less than a year old. However, revenue growth was slightly less than what analysts had predicted.

For the third quarter, the Lake Forest, Illinois-based company's net income rose to $46.5 million or $0.54 per share from $39.2 million or $0.45 per share in the corresponding period last year.

Results for the most recent quarter included the effect of $3.3 million transactional expenses related to acquisitions, offset by $1.8 million net release of prior years' tax reserves. Net income for the prior year quarter included the effect of $0.1 million of charges related to an arbitration settlement.

Adjusted for these charges, earnings rose 23.6% to $0.55 per share from $0.45 per share in the same period last year and came in above the $0.53 per share consensus estimate of seven analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.

Revenues for the quarter increased 7.5% to $297.8 million, from $277.1 million in the same quarter last year. Six analysts polled by Thomson Retuers expected the company to report revenues of $300.05 million for the quarter.

Revenues were helped by a contribution of $19.3 million from acquisitions less than 12 months old. Adjusted for an unfavorable foreign exchange impacts of $10.1 million, revenues would have grown 11.1% from the third quarter of 2008. Regulated returns management services revenues were almost flat at $16.0 million compared with $16.1 million a year earlier.
In the immediately preceding second quarter, Stericycle reported a profit of $43.90 million or $0.51 per share, helped largely by higher margins. Revenues for the quarter increased 4.1% to $289.27 million.

Amongst others in the industry, hazardous and industrial waste management services provider, American Econlogy Corp. (ECOL) reported a decline in third quarter earnings to $4.2 million from $4.3 million in the year-ago period. Earnings per share for the quarter was $0.23, flat with last year. Revenue for the third quarter of 2009 was $37.5 million, down from $41.1 million in the same quarter last year reflecting both lower transportation related and lower treatment and disposal revenue.

Another major player, Waste Management, Inc. (WMI), for its second quarter, reported a a 22.3% year-over-year decline in profit to $247 million or $0.50 per share, due to lower volumes and the deterioration of the recycling commodities markets. Operating revenues declined to $2.95 billion.

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