NYSE$STE

STERIS PLC · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

STERIS's third quarter results for fiscal year 2020 showed revenue growth and increased EPS.

STERIS plc announced financial results for its fiscal 2020 third quarter ended December 31, 2019. Revenue as reported for the quarter increased 11% to $774.3 million. Net income for the third quarter was $104.9 million, or $1.23 per diluted share. Adjusted net income for the third quarter of fiscal 2020 was $124.0 million, or $1.45 per diluted share.

  • Third quarter revenue grew 11% as reported, 12% constant currency organic
  • EPS as reported increased to $1.23, adjusted EPS increased to $1.45
  • Outlook updated to reflect stronger than anticipated performance
  • The company is increasing its guidance for revenue, earnings and cash flow for the full fiscal year.

Headline financials

Total Revenue

$774M

Previous: $696M+11.2%
EPS (adj)

$1.45

Previous: $1.26+15.1%
Const. Curr. Organic Growth

12.0%

No prior period
Capital Expenditures

-$154M

Previous: $50.7M-403.1%
Free Cash Flow

$238M

Previous: $83.2M+185.7%
Net Income

$105M

Previous: $47.9M+119.3%
Operating Income

$142M

Previous: $69.6M+104.6%
Gross Profit

$331M

Previous: $287M+15.5%
Cash & Equivalents

$199M

Previous: $225M-11.4%
Total Assets

$5.34B

No prior period
Stock-Based Comp

$5.59M

Previous: $5.42M+3.1%

Revenue & EPS history

STERIS · Revenue · Quarterly

$774M

Q3 2020+11.2%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

STERIS · $630M total across 3 segments · Q3 2020

  • Healthcare
    $365M+8.0%
  • AST
    $156M+14.3%
  • Life Sciences
    $109M+16.4%

Forward guidance

Based on current performance and expectations for the full fiscal year, the Company is updating its prior outlook. Constant currency organic revenue growth is now expected to be approximately 9%. Adjusted earnings per diluted share are now anticipated to be at the high-end of the previously communicated range of $5.50 - $5.65. Capital spending is anticipated to be approximately $240 million and free cash flow is expected to be approximately $340 million.

Tailwinds

  • Constant currency organic revenue growth is now expected to be approximately 9%
  • Adjusted earnings per diluted share are now anticipated to be at the high-end of the previously communicated range of $5.50 - $5.65
  • Capital spending is anticipated to be approximately $240 million
  • Free cash flow is expected to be approximately $340 million

Headwinds

  • Currency movements will negatively impact as reported revenue by approximately $20 million in fiscal 2020

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 2020

Historical avgQ3 2020

+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

Earnings price reactions
QuarterReport dateReaction (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%

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