NASDAQ$SHC
Sotera Health Company · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Reported a mixed performance with revenue growth offset by a net loss due to legal settlements and increased interest expenses.
Sotera Health reported a 6% increase in net revenues to $263 million for Q3 2023, but experienced a net loss of $14 million, or $0.05 per diluted share, due to a $35 million legal settlement and higher interest expenses. Adjusted EBITDA increased by 7% to $134 million, while Adjusted EPS decreased to $0.21. The company reaffirmed its 2023 outlook, anticipating results at the lower end of the previously announced range.
- Net revenues increased by 6% to $263 million compared to Q3 2022.
- Net loss was $14 million, or $0.05 per diluted share, including a $35 million legal settlement.
- Adjusted EBITDA increased by 7% to $134 million compared to Q3 2022.
- Adjusted EPS decreased to $0.21, driven by higher interest expense.
Headline financials
Revenue & EPS history
Sotera Health · Revenue · Quarterly
$263M
Revenue by segment
Sotera Health · $263M total across 3 segments · Q3 2023
- Sterigenics$168M+6.7%64.0%
- Nelson Labs$54.7M-2.1%20.8%
- Nordion$40.1M+14.3%15.2%
Forward guidance
Sotera Health anticipates 2023 results will be at the lower end of its previously announced outlook due to ongoing market softness.
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%.
- Fully diluted share count remains in the range of 283 million to 285 million shares on a weighted-average basis.
- Year-end Net Leverage Ratio expected to end the year at or below 4.0x.
Headwinds
- Ongoing market softness impacting overall performance.
- Uncertainties caused by changes to the regulatory landscape.
- Potential impact from restructuring items.
- Fair value measurements may affect future earnings.
- Assumptions are subject to several known and unknown risks and uncertainties.
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 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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