NASDAQ$SHC
Sotera Health Company · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Sotera Health's Q4 2022 results reflected revenue increase and a net loss due to a legal reserve, while adjusted EBITDA and EPS improved.
Sotera Health reported a 4.3% increase in net revenues to $252 million for Q4 2022 compared to $241 million in Q4 2021. However, the company experienced a net loss of $320 million, or $1.14 per diluted share, due to a $408 million legal reserve. Adjusted EBITDA increased by 4.0% to $130 million, and Adjusted EPS was $0.25, an increase of $0.02 per diluted share.
- Net revenues increased by 4.3% to $252 million compared to Q4 2021.
- Net loss was $320 million, or $1.14 per diluted share, including a $408 million legal reserve.
- Adjusted EBITDA increased by 4.0% to $130 million compared to the prior-year quarter.
- Adjusted EPS was $0.25, an increase of $0.02 per diluted share compared to Q4 2021.
Headline financials
Revenue & EPS history
Sotera Health · Revenue · Quarterly
$252M
Revenue by segment
Sotera Health · $252M total across 3 segments · Q4 2022
- Sterigenics$162M+7.6%64.3%
- Nelson Labs$55.8M+2.7%22.2%
- Nordion$34.1M-7.1%13.5%
Forward guidance
Sotera Health provided its full-year 2023 outlook, including net revenues in the range of $1.055 to $1.090 billion and Adjusted EBITDA in the range of $530 to $550 million.
Tailwinds
- Net revenues in the range of $1.055 to $1.090 billion, representing growth of approximately 5% to 9%, compared to the prior year.
- Adjusted EBITDA in the range of $530 to $550 million, representing growth of approximately 5% to 9%, compared to the prior year.
- Tax rate applicable to Adjusted Net Income in the range of 30% to 33%.
- A fully diluted share count in the range of 283 to 285 million shares on a weighted-average basis.
- 2023 year-end Net Leverage Ratio to be within the long-term stated range of 2.0x - 4.0x.
Headwinds
- Adjusted EPS in the range of $0.78 to $0.86, representing decline of 10% to 19% versus the prior year, primarily driven by increased interest expense and an increased tax rate.
- Capital expenditures in the range of $185 to $215 million.
- Uncertainties regarding supply chain continuity, 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.
- Expectation that exchange rates as of December 31, 2022 remain relatively constant for the remainder of 2023.
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 Q4 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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