NASDAQ$SHC

Sotera Health Company · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Sotera Health's first quarter performance in 2024 showed revenue and net income growth.

Sotera Health reported a solid start to 2024 with a 12.5% increase in net revenues to $248 million and a rise in net income to $6 million, or $0.02 per diluted share. The company reaffirmed its 2024 outlook, focusing on strategic priorities amidst market headwinds.

  • Net revenues increased by 12.5% to $248 million compared to Q1 2023.
  • Net income was $6 million, or $0.02 per diluted share, up from $3 million, or $0.01 per diluted share in Q1 2023.
  • Adjusted EBITDA increased by 13.7% to $112 million compared to Q1 2023.
  • Adjusted EPS was $0.13, consistent with Q1 2023.

Headline financials

Total Revenue

$248M

Previous: $221M+12.5%
EPS

$0.02

Previous: $0.13-84.6%
Adjusted EBITDA

$112M

No prior period
Adjusted EBITDA Margin

45.1%

No prior period
Capital Expenditures

-$34.9M

Previous: -$45M+22.5%
Free Cash Flow

-$28.6M

Previous: -$42.2M+32.2%
Net Income

$6.32M

Previous: $2.84M+122.5%
Operating Income

$53.2M

Previous: $33.4M+59.4%
Gross Profit

$127M

Previous: $112M+14.0%
Cash & Equivalents

$261M

Previous: $648M-59.7%
Total Assets

$3.06B

Previous: $3.41B-10.4%
Stock-Based Comp

$8.66M

Previous: $7.29M+18.9%

Revenue & EPS history

Sotera Health · Revenue · Quarterly

$248M

Q1 2024+12.5%vs Q1 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sotera Health · $263M total across 3 segments · Q3 2023

  • Sterigenics
    $168M+6.7%
  • Nelson Labs
    $54.7M-2.1%
  • Nordion
    $40.1M+14.3%

Forward guidance

Sotera Health reaffirmed its 2024 outlook, initially provided on February 27, 2024.

Tailwinds

  • Net revenues and Adjusted EBITDA growth in the range of 4.0% to 6.0%.
  • Interest Expense in the range of $170 million to $180 million.
  • Tax rate applicable to Adjusted Net Income in the range of 31.5% to 34.5%.
  • Adjusted EPS in the range of $0.67 to $0.75.
  • A weighted-average fully diluted share count in the range of 283 million to 285 million shares.

Headwinds

  • Capital expenditures in the range of $205 million to $225 million.
  • Supply chain continuity, particularly for the supply of EO and Cobalt-60.
  • The impact of inflationary trends including their impact on energy prices and the supply of labor.
  • The expectation that exchange rates as of March 31, 2024 remain constant for the remainder of 2024.
  • Uncertainties caused by changes to the regulatory landscape, restructuring items and certain fair value measurements.

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 2024

Historical avgQ1 2024

-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

Earnings price reactions
QuarterReport dateReaction (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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