Core Viewpoint - STERIS plc (STE) is set to release its fourth-quarter fiscal 2025 results on May 14, with expectations of revenue growth and increased earnings per share (EPS) compared to the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for revenues is $1.48 billion, reflecting a 4.2% increase from the prior year [2]. - The Zacks Consensus Estimate for EPS is $2.58, indicating a year-over-year increase of 7.1% [2]. - In the last reported quarter, STERIS posted adjusted EPS of $2.32, matching the Zacks Consensus Estimate, with an average surprise of 0.61% over the last four quarters [1][3]. Segment Analysis - **Healthcare**: Growth in consumables and services is expected to continue, driven by increased procedure volumes in the U.S. and market share gains [4]. The revenue for Healthcare capital equipment is projected to improve by 4.1% year-over-year [6]. - **Applied Sterilization Technologies (AST)**: Organic revenue growth is anticipated, with a projected increase of 9% year-over-year for this segment [7][8]. Despite previous declines in capital equipment shipments, demand in bioprocessing is expected to contribute positively [7]. - **Life Sciences**: This segment may see a revenue decline of 1.5% year-over-year, as strong growth in consumables and services is offset by a decrease in capital equipment revenue [9]. Estimate Revision Trend - Earnings estimates for STERIS have remained stable at $2.58 per share over the past 60 days, indicating confidence in the upcoming results [3]. Earnings ESP and Zacks Rank - STERIS has an Earnings ESP of 0.00%, suggesting a lower likelihood of beating earnings expectations [11]. The company currently holds a Zacks Rank of 3 (Hold) [11].

DUBLIN, IRELAND, April 22, 2025 (GLOBE NEWSWIRE) -- STERIS plc (NYSE:STE) ("STERIS" or the "Company") announced today that it will host a conference call to discuss its fiscal 2025 fourth quarter and full year financial results at 9:00 a.m. ET on May 15, 2025. The conference call can be heard live at www.steris-ir.com or via phone by dialing 1-833-535-2199 in the United States or 1-412-902-6776 internationally, then asking to join the conference call for STERIS plc. A press release detailing financial resul ...

STERIS plc’s (STE) Healthcare business continues to benefit from robust U.S. procedure volumes, favorable pricing and market share gains. Service revenues fuel the Applied Sterilization Technologies (“AST”) segment’s growth. Moreover, sound financial health bodes well for the stock. Meanwhile, macroeconomic challenges and adverse currency impacts appear concerning for the company’s operations. In the past year, shares of this Zacks Rank #3 (Hold) company have advanced 10.4% against the industry’s 10.4% fall ...

Core Insights - The article discusses the investment potential of a specific company, highlighting its strong market position and growth prospects [1][2] Company Analysis - The company has demonstrated a beneficial long position in its shares, indicating confidence in its future performance [1] - The analysis emphasizes the importance of understanding past performance as a factor in evaluating future results, although it does not guarantee them [2] Industry Context - The article suggests that the broader industry trends may impact the company's performance, although specific trends are not detailed [2]

Did you analyze how Steris (STE) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this medical products maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For ...

Financial Performance - Revenues increased 5.6% to $1,370.6 million for the three months ended December 31, 2024, compared to $1,297.7 million for the same period in the prior year[160]. - Gross profit for the three months ended December 31, 2024, was $610.3 million, a 9.0% increase from $560.0 million in the prior year[180]. - Income from operations for the third quarter of fiscal 2025 was $245.3 million, compared to $226.5 million for the same period in fiscal 2024[162]. - Total revenues for the nine months ended December 31, 2024, were $3.98 billion, reflecting a 7.0% increase compared to $3.72 billion in 2023[200]. - Operating income for the same period was reported at $686,140,000, while net income stood at $574,877,000[226]. Cash Flow and Capital Management - Cash flows from operations were $887.3 million for the first nine months of fiscal 2025, compared to $718.5 million for the same period in fiscal 2024[163]. - Free cash flow for the first nine months of fiscal 2025 was $588.1 million, an increase from $457.0 million in the same period of fiscal 2024[169]. - Total cash dividends paid to ordinary shareholders increased to $163.9 million, or $1.66 per share, in the first nine months of fiscal 2025, compared to $149.2 million, or $1.51 per share, in the same period of fiscal 2024[218]. - The company repaid $638.1 million of term loans during the first nine months of fiscal 2025, compared to $45.0 million in the same period of fiscal 2024[213]. Debt and Capital Structure - The debt-to-total capital ratio improved to 25.2% at December 31, 2024, down from 33.7% at March 31, 2024[164]. - Debt-to-total capital ratio improved to 25.2% at December 31, 2024, down from 34.0% at December 31, 2023[216]. Segment Performance - Service revenues rose by 10.4% to $652.2 million for the three months ended December 31, 2024, driven by growth in the Healthcare and AST segments[171]. - Healthcare segment revenues increased by 6.5% to $976.0 million for the three months ended December 31, 2024, driven by a 13.5% increase in service revenues[201]. - AST segment revenues increased by 9.9% to $258.1 million for the three months ended December 31, 2024, primarily due to increased pricing and volume[203]. - Life Sciences segment revenues decreased by 6.9% to $136.4 million for the three months ended December 31, 2024, impacted by a 30.7% decline in capital equipment revenues[204]. Expenses and Investments - Total operating expenses increased by 9.4% to $365.0 million for the three months ended December 31, 2024, compared to $333.6 million for the same period in the prior year[182]. - Research and development expenses rose by 8.3% to $27.4 million for the three months ended December 31, 2024, reflecting ongoing investments in new product development and technological innovations[183]. - Capital expenditures totaled $299.2 million for the first nine months of fiscal 2025, compared to $268.8 million during the same prior year period[213]. Restructuring and Future Outlook - The company anticipates annual improvements in income from operations of approximately $25.0 million due to a targeted restructuring plan, with benefits expected to materialize primarily in fiscal 2026 and beyond[184]. - Total pre-tax restructuring expenses recorded in fiscal 2025 related to the restructuring plan amounted to $33.1 million for the nine months ended December 31, 2024[185]. - The restructuring plan aims to achieve pre-tax savings, although the timeline and realization of benefits remain uncertain[235]. Legal and Regulatory Risks - The company is involved in various legal proceedings and claims, which may impact financial results but are not expected to have a material adverse effect on the consolidated financial position[231]. - The company anticipates potential risks from public health crises, market demand fluctuations, and regulatory changes that could affect operations and financial performance[234]. Currency and Commodity Risks - The company is subject to interest rate, currency, and commodity risks, with exposures not changing materially since March 31, 2024[237]. - The company held forward foreign currency contracts to hedge a portion of expected non-U.S. dollar-denominated earnings against the US dollar during the third quarter of fiscal 2025[238]. - The company entered into commodity swap contracts to buy 197.3 thousand pounds of nickel to hedge against price changes impacting raw materials[240]. Internal Controls and Compliance - The company evaluated the effectiveness of its disclosure controls and procedures, concluding they were effective as of the end of the reporting period[241]. - There were no changes in internal control over financial reporting that materially affected or are likely to materially affect the company's internal control during the quarter ended December 31, 2024[242].

Financial Data and Key Metrics Changes - Total revenue for the third quarter grew by 6%, with constant currency organic revenue also increasing by 6%, driven by volume and a 240 basis point price increase [8] - Gross margin increased by 90 basis points year-over-year to 44.6% [8] - EBIT margin decreased by 10 basis points to 23.3% compared to the previous year's third quarter [9] - Net income from continuing operations was $229 million, with adjusted earnings per diluted share increasing by 11% to $2.32 [10][11] - Free cash flow for the first nine months was $588 million, on track to meet the full-year guidance of approximately $700 million [12] Business Line Data and Key Metrics Changes - Healthcare constant currency organic revenue grew by 7%, driven by strong recurring revenue streams, while capital equipment revenue declined by 5% due to shipment timing [13][14] - AST constant currency organic revenue grew by 10%, with services growing by 10% and a slight decline in capital equipment shipments [15] - Life Sciences Group saw a 1% decline in constant currency organic revenue, with margins improving to 42.6%, benefiting from favorable mix pricing and the divestiture of CECS [17] Market Data and Key Metrics Changes - Orders in the healthcare segment grew over 10%, reflected in a $435 million healthcare backlog [14] - The company noted that while order growth remains robust, shipments were delayed due to customer project delays [14] Company Strategy and Development Direction - The company is tightening its revenue and earnings guidance for 2025, now expecting approximately 6% as-reported revenue growth and constant currency organic revenue growth [19] - The company is optimistic about the bioprocessing demand and believes it has worked through inventory challenges, expecting normalized growth going forward [30] - The company continues to invest in facilities and processes to meet or exceed environmental and regulatory standards [21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the trends in the AST segment, noting that while there has been a recent uptick in growth, they are not ready to declare victory [45] - The management highlighted that the spending from healthcare customers remains strong, with no significant concerns about order structures [73] - The company is well-positioned to comply with existing regulations regarding ethylene oxide and does not anticipate changes in the current legislative environment [63] Other Important Information - The company incurred over $10 million in additional litigation expenses year-over-year due to ongoing legal matters related to ethylene oxide [9][20] - Capital expenditures for the first nine months totaled $299 million, with depreciation and amortization at $354 million [11][12] Q&A Session Summary Question: Concerns about Healthcare Capital Equipment - Management indicated that delays in shipments are due to customer readiness rather than hesitancy, with strong order growth still observed [26] Question: Trends in Bioprocessing Demand - Management noted optimism in bioprocessing demand, suggesting that the market is recovering from previous inventory challenges [30] Question: Potential Impact of Tariffs - Management is taking a wait-and-see approach regarding potential tariff reintroductions, emphasizing ongoing analysis of the situation [35] Question: Sustainability of Margin Performance - Management expressed confidence in the sustainability of margin improvements, driven by favorable volume, mix, and pricing [53] Question: Update on Ethylene Oxide Cases - Management confirmed that the retrial for the first ethylene oxide case is scheduled for May, with no additional cases added beyond what was previously disclosed [58] Question: Customer Concerns about Policy Changes - Management reported no significant concerns from customers regarding potential policy changes, with strong order growth in both healthcare and life sciences [71]

Core Viewpoint - STERIS plc reported third-quarter fiscal 2025 adjusted EPS of $2.32, reflecting a 9.9% increase year-over-year, aligning with Zacks Consensus Estimate, while revenues of $1.37 billion increased 5.6% year-over-year but missed estimates by 0.7% [1][3][12] Financial Performance - Adjusted EPS of $2.32, GAAP EPS of $1.75, up 17.4% from $1.49 year-over-year [1][2] - Revenues of $1.37 billion from continuing operations, a 5.6% increase year-over-year, but missed Zacks Consensus Estimate [3][12] - Organic revenues at constant exchange rate (CER) rose 6% year-over-year [3] Segment Performance - Healthcare segment revenues rose 7% year-over-year to $976.0 million, with consumable revenues up 9% and service revenues up 13%, partially offset by a 5% decline in capital equipment revenues [4] - Applied Sterilization Technologies (AST) revenues improved 10% to $258.1 million, driven by a 10% growth in service revenues [5] - Life Sciences segment revenues decreased 7% to $136.4 million, impacted by the divestiture of the CECS business, despite a 14% growth in consumable revenues [6] Margins and Expenses - Gross profit increased 9% to $610.3 million, with gross margin expanding 138 basis points to 44.5% [7] - Selling, general and administrative expenses rose 8.8% to $335.4 million, while research and development expenses increased 8.3% to $27.4 million [8] Cash Flow and Guidance - Cumulative net cash flow from operating activities reached $887.3 million, up from $718.5 million year-over-year [10] - Updated fiscal 2025 revenue guidance expects approximately 6% growth, down from earlier estimates of 6.5-7.5% [11] Overall Assessment - The earnings met estimates, but revenue performance was mixed, with growth in most segments except Life Sciences, attributed to a rebound in procedure volume and favorable pricing [12] - Margin expansion is a positive indicator, although the lowered revenue guidance may raise concerns [13]

Core Insights - Steris reported revenue of $1.37 billion for the quarter ended December 2024, a decrease of 1.8% year-over-year, with EPS at $2.32 compared to $2.22 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.38 billion, resulting in a surprise of -0.67%, while EPS met the consensus estimate [1] Financial Performance - Healthcare revenues were $976.04 million, below the average estimate of $983.64 million, reflecting a year-over-year increase of 6.5% [4] - Healthcare Products - Consumables generated $358.23 million, slightly above the estimate of $356.72 million, with an 8.7% year-over-year increase [4] - Healthcare Products - Capital equipment revenues were $254.80 million, below the estimated $285.02 million, showing a decline of 4.5% year-over-year [4] - Healthcare Products - Service revenues reached $363.01 million, exceeding the estimate of $341.91 million, with a year-over-year increase of 13.5% [4] - Life Sciences revenues totaled $136.38 million, below the estimate of $141.59 million, marking a 7% decline year-over-year [4] - Applied Sterilization Technologies (AST) revenues were $258.14 million, slightly above the estimate of $254.63 million, with a year-over-year increase of 9.9% [4] - Life Sciences - Service revenues were $36.64 million, below the estimate of $41.15 million, reflecting a 12% decline year-over-year [4] - Life Sciences - Capital equipment revenues were $31.06 million, exceeding the estimate of $28.74 million, but showing a significant decline of 30.7% year-over-year [4] - Life Sciences - Consumables revenues were $68.68 million, below the estimate of $78.26 million, with a year-over-year increase of 14.3% [4] Operating Income - Operating income for Healthcare was $246.92 million, surpassing the average estimate of $231.39 million [4] - Corporate and Other reported an operating loss of $100.84 million, worse than the average estimate of -$86.36 million [4] - Operating income for Applied Sterilization Technologies (AST) was $115.76 million, slightly above the estimate of $112.21 million [4] Stock Performance - Steris shares have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Steris (STE) came out with quarterly earnings of $2.32 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $2.22 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this medical products maker would post earnings of $2.11 per share when it actually produced earnings of $2.14, delivering a surprise of 1.42%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Steris, which belongs to th ...