NASDAQ$SHC

Sotera Health Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Sotera Health reported an increase in net revenues and adjusted EBITDA compared to the same period last year, while narrowing its full-year outlook.

Sotera Health's Q2 2022 net revenues increased by 6% to $267 million, and net income was $30 million, or $0.11 per diluted share. Adjusted EBITDA increased by 1% to $136 million, and Adjusted EPS increased to $0.27. The company narrowed its full-year 2022 net revenues outlook to $1.0 to $1.022 billion and Adjusted EBITDA outlook to $515 to $525 million.

  • Net revenues for Q2 2022 increased by 6% compared to Q2 2021, reaching $267 million.
  • Net income for Q2 2022 was $30 million, or $0.11 per diluted share, compared to $43 million, or $0.15 per diluted share in Q2 2021.
  • Adjusted EBITDA for Q2 2022 increased by 1% compared to Q2 2021, totaling $136 million.
  • Adjusted EPS for Q2 2022 increased by $0.01 to $0.27, compared to Q2 2021.

Headline financials

Total Revenue

$267M

Previous: $252M+5.8%
EPS (adj)

$0.27

Previous: $0.26+3.8%
Capital Expenditures

-$71.6M

Previous: -$44.8M-60.0%
Free Cash Flow

-$41.2M

Previous: -$2.19M-1782.4%
Net Income

$30.4M

Previous: $42.6M-28.6%
Operating Income

$71.5M

Previous: $78.3M-8.7%
Gross Profit

$150M

Previous: $144M+4.6%
Cash & Equivalents

$140M

Previous: $156M-10.7%
Total Assets

$2.84B

Previous: $2.85B-0.4%
Stock-Based Comp

$5.8M

Previous: $3.49M+66.1%

Revenue & EPS history

Sotera Health · Revenue · Quarterly

$267M

Q2 2022+5.8%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sotera Health · $267M total across 3 segments · Q2 2022

  • Sterigenics
    $158M+8.7%
  • Nelson Labs
    $58.4M+1.3%
  • Nordion
    $50.5M+2.8%

Forward guidance

Sotera Health narrowed its full-year 2022 outlook for net revenues to a range of $1.0 to $1.022 billion and adjusted EBITDA to a range of $515 to $525 million.

Tailwinds

  • Net revenues are expected to be in the range of $1.0 to $1.022 billion, representing growth of approximately 7% to 10% compared to the prior year.
  • Adjusted EBITDA is projected to be in the range of $515 to $525 million, representing growth of approximately 7% to 9% compared to the prior year.
  • Adjusted EPS is expected to be in the range of $0.93 to $0.97, representing growth of 6% to 10% versus the prior year.
  • The tax rate applicable to Adjusted Net Income is anticipated to be in the range of 29% to 30%.
  • The company anticipates a fully diluted share count in the range of 280 million to 282 million shares on a weighted-average basis.

Headwinds

  • The outlook is subject to assumptions regarding supply chain continuity, particularly for EO and Co-60.
  • The outlook is subject to the impact of inflationary trends, including their impact on energy prices and the supply of labor.
  • The outlook is subject to the impact of the COVID-19 pandemic, including the rate of recoveries of elective procedures and new product development testing.
  • The outlook assumes that exchange rates as of second-quarter 2022 remain constant for the remainder of 2022.
  • The outlook is subject to risks and uncertainties, including changes in industry trends and environmental, health and safety regulations.

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 Q2 2022

Historical avgQ2 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

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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