NASDAQ$SHC
Sotera Health Company · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
Sotera Health's Q3 2022 financial performance reflected revenue growth and adjusted EPS improvement.
Sotera Health reported a 10% increase in net revenues to $249 million for Q3 2022, with net income at $25 million, or $0.09 per diluted share. Adjusted EPS improved to $0.23. The company is adjusting its full-year 2022 net revenue growth outlook to 7% - 8% and Adjusted EBITDA growth to 4% - 6%.
- Net revenues for Q3 2022 increased by 10% to $249 million compared to Q3 2021.
- Net income for Q3 2022 was $25 million, or $0.09 per diluted share.
- Adjusted EBITDA for Q3 2022 increased by 7% to $125 million compared to Q3 2021.
- Adjusted EPS for Q3 2022 improved to $0.23, up from $0.21 in Q3 2021.
Headline financials
Revenue & EPS history
Sotera Health · Revenue · Quarterly
$249M
Revenue by segment
Sotera Health · $249M total across 3 segments · Q3 2022
- Sterigenics$158M+8.5%63.4%
- Nelson Labs$55.9M+7.3%22.5%
- Nordion$35.1M+21.9%14.1%
Forward guidance
Sotera Health is updating its 2022 outlook with net revenues expected to be in the range of $995 million to $1.005 billion and Adjusted EBITDA in the range of $500 million to $510 million.
Tailwinds
- Net revenues in the range of $995 million to $1.005 billion, representing growth of 7% to 8%, compared to the prior year.
- Adjusted EBITDA in the range of $500 million to $510 million, representing growth of 4% to 6%, compared to the prior year.
- Tax rate applicable to Adjusted Net Income of approximately 28%.
- Adjusted EPS of $0.91 to $0.95.
- Net leverage reduction in the range of 3.2x to 3.3x.
Headwinds
- Incremental 1% foreign exchange headwind.
- Slower recovery in certain testing categories at Nelson Labs.
- Supply chain continuity risks, particularly for the supply of ethylene oxide (“EO”) and cobalt-60 (“Co-60”).
- Impact of inflationary trends including their impact on energy prices and the supply of labor.
- Impact of the COVID-19 pandemic including the rate of recoveries of elective procedures and new product development testing.
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 Q3 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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