NASDAQ$SHC

Sotera Health Company · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Sotera Health's Q3 2024 financial performance was reported, showcasing revenue and earnings growth.

Sotera Health reported an 8.5% increase in net revenues, reaching $285 million for Q3 2024, compared to $263 million in Q3 2023. Net income was $17 million, or $0.06 per diluted share, a significant improvement from the net loss of $14 million, or $0.05 per diluted share, in the same quarter last year. The company reaffirmed its 2024 net revenue and Adjusted EBITDA outlook ranges.

  • Net revenues for Q3 2024 increased by 8.5% to $285 million compared to Q3 2023.
  • Net income for Q3 2024 was $17 million, or $0.06 per diluted share, compared to a net loss of $14 million, or $0.05 per diluted share in Q3 2023.
  • Adjusted EBITDA for Q3 2024 increased by 9.0% to $146 million compared to $134 million in Q3 2023.
  • Adjusted EPS for Q3 2024 increased to $0.17, up from $0.16 in Q3 2023.

Headline financials

Total Revenue

$285M

Previous: $263M+8.5%
EPS

$0.06

Previous: $0.21-71.4%
Adjusted EBITDA

$146M

Previous: $134M+9.2%
Adjusted EBITDA Margin

51.3%

No prior period
Net Leverage Ratio

3.7

Previous: 4.2-11.9%
Capital Expenditures

-$113M

Previous: -$150M+24.6%
Free Cash Flow

-$96.2M

Previous: -$164M+41.3%
Net Income

$17M

Previous: -$13.7M+224.4%
Operating Income

$80.5M

Previous: $76.1M+5.8%
Gross Profit

$158M

Previous: $146M+8.2%
Cash & Equivalents

$307M

Previous: $245M+25.2%
Total Assets

$3.15B

Previous: $3.04B+3.7%
Stock-Based Comp

$9.79M

Previous: $8.37M+16.9%

Revenue & EPS history

Sotera Health · Revenue · Quarterly

$285M

Q3 2024+8.5%vs Q3 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 ranges, including net revenues and Adjusted EBITDA growth in the range of 4.0% to 6.0%, Adjusted EPS in the range of $0.67 to $0.75, and a weighted-average fully diluted share count in the range of 283 million to 285 million shares. Capital expenditures are now expected to be in the range of $175 million to $185 million, from previous guidance of $205 million to $225 million.

Tailwinds

  • Net revenues growth in the range of 4.0% to 6.0%.
  • Adjusted EBITDA growth in the range of 4.0% to 6.0%.
  • 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.
  • Capital expenditures are now expected to be in the range of $175 million to $185 million, from previous guidance of $205 million to $225 million.

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 2024

Historical avgQ3 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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