NASDAQ$SHC

Sotera Health Company · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Sotera Health reported Q4 2023 results with revenue increase driven by strong performance in Nordion and Sterigenics, offset by a slight decrease in Nelson Labs. Net income saw significant growth compared to the previous year due to a large legal reserve in 2022.

Sotera Health's Q4 2023 net revenues increased by 23.3% to $310 million compared to the same period last year. Net income was $39 million, a significant improvement from the net loss of $320 million in Q4 2022. Adjusted EBITDA increased by 28.7% to $167 million, and Adjusted EPS was $0.26, up by $0.01 per diluted share.

  • Net revenues for Q4 2023 increased by 23.3% to $310 million.
  • Net income for Q4 2023 was $39 million, compared to a net loss of $320 million in Q4 2022.
  • Adjusted EBITDA for Q4 2023 increased by 28.7% to $167 million.
  • Adjusted EPS for Q4 2023 was $0.26, an increase of $0.01 per diluted share.

Headline financials

Total Revenue

$310M

Previous: $252M+23.3%
EPS (adj)

$0.26

Previous: $0.25+4.0%
Capital Expenditures

-$64.8M

Previous: $71.7M-190.4%
Net Income

$38.7M

Previous: -$320M+112.1%
Operating Income

$104M

Previous: $60.2M+72.9%
Gross Profit

$164M

Previous: $142M+16.0%
Stock-Based Comp

$8.2M

Previous: $6.26M+31.1%

Revenue & EPS history

Sotera Health · Revenue · Quarterly

$310M

Q4 2023+23.3%vs Q4 2022
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 is providing its full-year 2024 outlook with net revenues and Adjusted EBITDA growth in the range of 4.0% to 6.0%.

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%.
  • Tax rate applicable to Adjusted Net Income in the range of 31.5% to 34.5%.
  • Adjusted EPS in the range of $0.67 to $0.75.
  • Capital expenditures in the range of $205 million to $225 million.

Headwinds

  • Interest Expense in the range of $170 million to $180 million.
  • Uncertainties caused by changes to the regulatory landscape.
  • Restructuring items.
  • Certain fair value measurements.
  • Impact of inflationary trends including their impact on energy prices and the supply of labor.

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 2023

Historical avgQ4 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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