NYSE$STE
STERIS PLC · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
STERIS's financial performance remained stable with flat revenue, but experienced a net loss due to a significant impairment charge related to the Dental segment. Adjusted EPS remained consistent with the previous year.
STERIS plc reported flat revenue at $1.2 billion for Q2 2023, with a net loss of $315.3 million due to a $490.6 million impairment charge in its Dental segment. However, constant currency organic revenue increased by 7%. Adjusted EPS was $1.99, consistent with the previous year.
- Revenue remained flat at $1.2 billion compared to the previous year, but constant currency organic revenue increased by 7%.
- The company reported a net loss of $315.3 million, or ($3.15) per share, due to a $490.6 million impairment charge related to the Dental segment.
- Adjusted EPS was $1.99, consistent with the $1.99 reported in the second quarter of fiscal 2022.
- Healthcare revenue declined by 2% to $732.8 million, while Applied Sterilization Technologies (AST) revenue increased by 13% to $232.4 million.
Headline financials
Revenue & EPS history
STERIS · Revenue · Quarterly
$1.2B
Revenue by segment
STERIS · $1.59B total across 3 segments · Q4 2027
- Healthcare$1.14B—71.5%
- Applied Sterilization Technologies$289M—18.2%
- Life Sciences$163M—10.3%
Forward guidance
STERIS anticipates currency headwinds impacting revenue and adjusted earnings per share for fiscal year 2023. As a result, as reported revenue is now anticipated to grow 8% compared with prior expectations of 9% growth and free cash flow will be approximately $600 million.
Tailwinds
- Constant currency organic revenue expectations are unchanged at 10% growth.
- Adjusted earnings per diluted share range of $8.40 to $8.60 remains unchanged.
- Strong backlog
- Increased visibility on supply chain
- Expect a strong second half of capital equipment shipments
Headwinds
- Total revenue impact is now expected to be approximately $150 million due to additional currency headwinds.
- The impact from foreign currency rate changes is now expected to impact adjusted earning per diluted share by approximately $0.15 for fiscal 2023.
- The Company believes the high-end of the adjusted earnings per diluted share range is less likely due to the additional currency headwind.
- As a result of higher than anticipated working capital requirements, in particular inventory, STERIS now anticipates free cash flow will be approximately $600 million for fiscal 2023, a decline from prior expectations of $675 million.
- As reported revenue is now anticipated to grow 8% compared with prior expectations of 9% growth.
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 Q2 2023
+0.5%
Avg return
Earnings day
+1.0%
Avg return
5 days after
+1.3%
Avg return
30 days after
59%
38 / 64 earnings
Positive
+12.9%
Q4 2014
Best reaction
-11.4%
Q3 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2027 | +0.0% | +7.2% | +2.8% | |
| Q3 2026 | -7.7% | -7.4% | -12.8% | |
| Q2 2026 | +7.0% | +9.7% | +8.3% | |
| Q4 2025 | +8.6% | +10.1% | +6.1% | |
| Q3 2025 | +2.1% | +1.1% | +5.4% | |
| Q2 2025 | -5.2% | -2.5% | -5.1% | |
| Q1 2025 | -1.8% | -0.8% | +0.5% | |
| Q4 2024 | +6.2% | +9.2% | +6.6% | |
| Q3 2024 | -2.5% | -0.4% | +3.4% | |
| Q2 2024 | -5.1% | -8.4% | -7.1% | |
| Q1 2024 | +1.0% | +0.2% | +1.8% | |
| Q4 2023 | +11.2% | +12.7% | +10.6% | |
| Q3 2023 | -11.4% | -9.5% | -18.2% | |
| Q2 2023 | +3.5% | +2.6% | +17.3% | |
| Q1 2023 | -8.8% | -4.7% | -10.0% | |
| Q4 2022 | +1.4% | +1.2% | +2.6% | |
| Q3 2022 | +4.6% | +1.3% | -2.1% | |
| Q2 2022 | -5.5% | -4.8% | -6.4% | |
| Q1 2022 | +0.6% | +1.2% | +0.2% | |
| Q4 2021 | -3.6% | -3.1% | +1.9% | |
| Q3 2021 | -1.9% | -1.7% | -8.1% | |
| Q2 2021 | -0.5% | +2.5% | +8.8% | |
| Q1 2021 | -1.0% | -3.4% | +2.5% | |
| Q4 2020 | +1.2% | +7.0% | +1.8% | |
| Q3 2020 | +6.1% | +10.2% | -5.0% | |
| Q2 2020 | +2.3% | +2.6% | +8.4% | |
| Q1 2020 | +3.0% | +4.1% | +3.0% | |
| Q4 2019 | +1.1% | +3.2% | +10.2% | |
| Q3 2019 | +1.9% | +3.1% | +3.6% | |
| Q2 2019 | +7.0% | +7.4% | +5.4% | |
| Q1 2019 | -0.7% | -1.1% | -1.9% | |
| Q4 2018 | +4.7% | +4.6% | +8.6% | |
| Q3 2018 | -4.7% | -2.8% | +7.8% | |
| Q2 2018 | -6.0% | -6.6% | -3.9% | |
| Q1 2018 | +4.9% | +3.3% | +5.8% | |
| Q4 2017 | +1.4% | -0.4% | +6.4% | |
| Q3 2017 | -6.5% | -5.7% | -3.4% | |
| Q2 2017 | -3.0% | +0.5% | -2.0% | |
| Q1 2017 | -1.6% | -1.9% | -2.0% | |
| Q4 2016 | -0.5% | — | — | |
| Q3 2016 | -1.9% | — | — | |
| Q2 2016 | +6.4% | — | — | |
| Q1 2016 | +0.7% | — | — | |
| Q4 2015 | +2.5% | — | — | |
| Q3 2015 | +1.1% | — | — | |
| Q2 2015 | +3.5% | — | — | |
| Q1 2015 | +0.3% | — | — | |
| Q4 2014 | +12.9% | — | — | |
| Q3 2014 | +0.5% | — | — | |
| Q2 2014 | -3.6% | — | — | |
| Q1 2014 | -3.6% | — | — | |
| Q4 2013 | +8.3% | — | — | |
| Q3 2013 | +1.4% | — | — | |
| Q1 2013 | +1.4% | — | — | |
| Q2 2013 | +1.1% | — | — | |
| Q4 2012 | -0.3% | — | — | |
| Q3 2012 | +0.8% | — | — | |
| Q1 2012 | +0.8% | — | — | |
| Q2 2012 | -4.4% | — | — | |
| Q4 2011 | +0.3% | — | — | |
| Q3 2010 | +0.2% | — | — | |
| Q1 2010 | +0.2% | — | — | |
| Q2 2010 | +0.8% | — | — | |
| Q4 2010 | -0.1% | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro