NASDAQ$SHC

Sotera Health Company · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Sotera Health's financial performance was impacted by Nordion Cobalt-60 harvest schedule timing and volume softness at Sterigenics and Nelson Labs.

Sotera Health reported a decrease in second-quarter net revenues by 4% to $255 million, primarily due to Nordion Cobalt-60 harvest schedule timing. Net income decreased to $24 million, or $0.08 per diluted share. The company has adjusted its full-year 2023 net revenue outlook to $1.035 billion to $1.055 billion and Adjusted EBITDA to $520 million to $535 million due to continued volume softness.

  • Q2 2023 net revenues decreased 4% to $255 million, driven by Nordion Cobalt-60 harvest schedule timing.
  • Q2 2023 net income decreased to $24 million, or $0.08 per diluted share.
  • Adjusted EBITDA for Q2 2023 decreased 6% to $128 million, impacted by Nordion Cobalt-60 timing.
  • Full-year 2023 net revenue outlook adjusted to $1.035 billion to $1.055 billion and Adjusted EBITDA to $520 million to $535 million.

Headline financials

Total Revenue

$255M

Previous: $267M-4.3%
EPS (adj)

$0.21

Previous: $0.27-22.2%
Capital Expenditures

-$98.1M

Previous: -$71.6M-37.0%
Free Cash Flow

-$74.6M

Previous: -$41.2M-81.0%
Net Income

$23.5M

Previous: $30.4M-22.7%
Operating Income

$63.2M

Previous: $71.5M-11.6%
Gross Profit

$140M

Previous: $150M-7.2%
Cash & Equivalents

$263M

Previous: $140M+88.2%
Total Assets

$3.07B

Previous: $2.84B+8.3%
Stock-Based Comp

$8.37M

Previous: $5.8M+44.3%

Revenue & EPS history

Sotera Health · Revenue · Quarterly

$255M

Q2 2023-4.3%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sotera Health · $255M total across 3 segments · Q2 2023

  • Sterigenics
    $167M+5.6%
  • Nelson Labs
    $56.7M-2.8%
  • Nordion
    $32M-36.7%

Forward guidance

Sotera Health is updating its 2023 outlook. Net revenues are expected to be in the range of $1.035 to $1.055 billion, and Adjusted EBITDA in the range of $520 to $535 million.

Tailwinds

  • Net revenues in the range of $1.035 to $1.055 billion, representing growth of approximately 3% to 5%, compared to the prior year
  • Adjusted EBITDA in the range of $520 to $535 million, representing growth of approximately 3% to 6%, compared to the prior year
  • Tax rate applicable to Adjusted Net Income in the range of 30% to 32%
  • Adjusted EPS remains in the range of $0.78 to $0.86
  • 2023 year-end Net Leverage Ratio expected to end the year at or below 4.0x

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 2023

Historical avgQ2 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

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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