NASDAQ$SHC
Sotera Health Company · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
Sotera Health's first-quarter performance in 2022 reflected double-digit top-line and bottom-line growth, driven by volume, mix, and pricing, while reaffirming the 2022 outlook.
Sotera Health reported a 12% increase in net revenues to $237 million for Q1 2022, with net income rising to $31 million, or $0.11 per diluted share. The company reaffirmed its 2022 financial outlook, focusing on execution and capacity building to meet future demand.
- Net revenues for Q1 2022 reached $237 million, a 12% increase compared to Q1 2021.
- Net income for Q1 2022 was $31 million, or $0.11 per diluted share, compared to $11 million, or $0.04 per diluted share in Q1 2021.
- Adjusted EBITDA for Q1 2022 increased by 10% to $115 million compared to the prior-year quarter.
- The company reaffirmed its 2022 financial outlook, initially provided on March 1, 2022.
Headline financials
Revenue & EPS history
Sotera Health · Revenue · Quarterly
$237M
Revenue by segment
Sotera Health · $236M total across 3 segments · Q1 2022
- Sterigenics$149M+13.6%63.1%
- Nelson Labs$53.3M-3.2%22.6%
- Nordion$34M+31.2%14.4%
Forward guidance
Sotera Health reaffirmed its 2022 outlook, with net revenues expected to be in the range of $1.0 billion to $1.03 billion, representing growth of approximately 7% to 11%. Adjusted EBITDA is projected to be between $515 million and $535 million, reflecting growth of approximately 7% to 11%. Adjusted EPS is anticipated to be in the range of $0.93 to $0.99, up 6% to 13% versus the prior year.
Tailwinds
- Net revenues in the range of $1.0 billion to $1.03 billion, representing growth of approximately 7% to 11%, compared to the prior year.
- Adjusted EBITDA in the range of $515 million to $535 million, representing growth of approximately 7% to 11%, compared to the prior year.
- Tax rate applicable to Adjusted Net Income in the range of 29% to 30%.
- Adjusted EPS in the range of $0.93 to $0.99, representing growth of 6% to 13% versus the prior year.
- Net leverage reduction of approximately 1⁄2 of a turn.
Headwinds
- Supply chain continuity, particularly for the supply of ethylene oxide (“EO”) and cobalt-60 (“Co-60”).
- The impact of inflationary trends including the impact on the supply of labor.
- The impact of the COVID-19 pandemic including the rate of recoveries of elective procedures and new product development testing.
- The expectation that exchange rates as of Q1 2022 remain constant for the remainder of 2022.
- Known and unknown risks and uncertainties, including those set forth below under “Forward-Looking Statements.”
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2022
-2.7%
Avg return
Earnings day
-3.0%
Avg return
5 days after
-2.4%
Avg return
30 days after
25%
6 / 24 earnings
Positive
+11.2%
Q2 2024
Best reaction
-15.9%
Q3 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -0.3% | +2.6% | +1.2% | |
| Q4 2025 | -0.5% | -7.1% | -22.6% | |
| Q3 2025 | -1.1% | -5.6% | -0.3% | |
| Q1 2025 | +5.2% | +11.7% | +6.4% | |
| Q4 2024 | -10.0% | -15.9% | -13.7% | |
| Q3 2024 | +2.0% | +1.8% | -17.9% | |
| Q2 2024 | +11.2% | +10.1% | +16.6% | |
| Q1 2024 | -2.2% | +1.8% | -0.8% | |
| Q4 2023 | -12.3% | -14.7% | -29.6% | |
| Q3 2023 | +1.2% | +5.8% | +10.6% | |
| Q2 2023 | -3.7% | -7.1% | -13.4% | |
| Q1 2023 | -7.5% | -7.9% | -9.2% | |
| Q4 2022 | -0.5% | +3.9% | +2.0% | |
| Q3 2022 | -10.6% | -7.7% | +28.6% | |
| Q2 2022 | +2.1% | +4.2% | -6.7% | |
| Q1 2022 | -2.8% | -5.4% | +3.7% | |
| Q4 2021 | -8.4% | -11.4% | -1.0% | |
| Q4 2019 | -8.4% | -11.4% | -1.0% | |
| Q3 2021 | -15.9% | -13.7% | -20.0% | |
| Q2 2021 | -0.7% | -6.3% | +1.0% | |
| Q2 2020 | -0.7% | -6.3% | +1.0% | |
| Q1 2021 | -5.4% | -3.4% | +3.5% | |
| Q1 2020 | -5.4% | -3.4% | +3.5% | |
| Q4 2020 | +8.9% | +13.6% | +1.4% | |
| Q3 2019 | — | — | — | |
| Q2 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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