NASDAQ$SHC
Sotera Health Company · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Sotera Health's first-quarter results were announced, revealing a decrease in net revenues and net income compared to the same quarter last year, primarily due to the timing of Nordion Cobalt-60 harvest schedules.
Sotera Health reported a decrease in first-quarter net revenues by 6.8% to $221 million, primarily driven by the anticipated timing of Nordion Cobalt-60 harvest schedules. Net income decreased to $3 million, or $0.01 per diluted share, compared to $31 million, or $0.11 per diluted share in the first quarter of the previous year. The company reaffirms its 2023 outlook, expecting revenue and adjusted EBITDA growth of 5% to 9%.
- Net revenues decreased by 7% compared to Q1 2022, totaling $221 million, mainly due to Nordion Cobalt-60 harvest schedule timing.
- Net income declined to $3 million, or $0.01 per diluted share, compared to $31 million, or $0.11 per diluted share in Q1 2022.
- Adjusted EBITDA decreased by 15% compared to Q1 2022, amounting to $98 million, influenced by Nordion Cobalt-60 harvest schedule timing.
- Adjusted EPS decreased to $0.13 per diluted share, a $0.09 decrease compared to Q1 2022.
Headline financials
Revenue & EPS history
Sotera Health · Revenue · Quarterly
$221M
Revenue by segment
Sotera Health · $221M total across 3 segments · Q1 2023
- Sterigenics$160M+7.4%72.5%
- Nelson Labs$52M-2.3%23.6%
- Nordion$8.55M-74.9%3.9%
Forward guidance
Sotera Health reaffirms its 2023 outlook, expecting net revenues in the range of $1.055 to $1.090 billion and Adjusted EBITDA in the range of $530 to $550 million.
Tailwinds
- Net revenues are expected to be in the range of $1.055 to $1.090 billion, representing growth of approximately 5% to 9% compared to the prior year.
- Adjusted EBITDA is projected to be in the range of $530 to $550 million, indicating growth of approximately 5% to 9% compared to the prior year.
- The tax rate applicable to Adjusted Net Income is expected to be in the range of 30% to 33%.
- Capital expenditures are anticipated to be in the range of $185 to $215 million.
- The 2023 year-end Net Leverage Ratio is expected to be within the long-term stated range of 2.0x - 4.0x.
Headwinds
- Adjusted EPS is expected to be in the range of $0.78 to $0.86, representing a decline of 10% to 19% versus the prior year.
- The decline in Adjusted EPS is primarily driven by increased interest expense and an increased tax rate.
- The outlook contains assumptions regarding supply chain continuity, particularly for the supply of EO and Co-60.
- The outlook is based on current plans and expectations and is subject to a number of known and unknown risks and uncertainties.
- The Company cannot reconcile its expected Adjusted EBITDA, Adjusted Net Income, Adjusted EPS and Net Leverage Ratio without unreasonable effort because certain items that impact net income, earnings per share and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
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 2023
-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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