NYSE$STE

STERIS PLC · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

STERIS's financial performance for Q4 2022 was announced, featuring a 39% increase in revenue and adjusted EPS of $2.04.

STERIS announced strong Q4 2022 results with a 39% increase in revenue to $1.2 billion and adjusted EPS of $2.04. The company anticipates another record year of performance in fiscal year 2023, despite ongoing supply chain and inflation challenges.

  • Revenue increased by 39% as reported, with an 11% constant currency organic increase.
  • Reported EPS was $0.52, while adjusted EPS reached $2.04.
  • Healthcare revenue grew by 32% to $738.8 million.
  • Applied Sterilization Technologies (AST) revenue increased by 19% to $222.9 million.

Headline financials

Total Revenue

$1.21B

Previous: $874M+38.6%
EPS (adj)

$2.04

Previous: $1.63+25.2%
Const. Curr. Organic Growth

11.0%

Previous: 0.3%+3566.7%
Capital Expenditures

$73.1M

Previous: $74.8M-2.3%
Free Cash Flow

$399M

Previous: $113M+252.8%
Net Income

$52.1M

Previous: $87.4M-40.5%
Operating Income

$91.9M

Previous: $144M-36.3%
Gross Profit

$572M

Previous: $380M+50.5%
Cash & Equivalents

$348M

Previous: $221M+57.9%
Total Assets

$11.5B

Previous: $6.57B+74.2%
Stock-Based Comp

$9.75M

Previous: $6.04M+61.4%

Revenue & EPS history

STERIS · Revenue · Quarterly

$1.21B

Q4 2022+38.6%vs Q4 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

STERIS · $1.59B total across 3 segments · Q4 2027

  • Healthcare
    $1.14B
  • Applied Sterilization Technologies
    $289M
  • Life Sciences
    $163M

Forward guidance

For fiscal year 2023, STERIS anticipates constant currency organic revenue growth of approximately 11% and as reported revenue to increase approximately 12%. Adjusted earnings per diluted share are expected to be in the range of $8.55 to $8.75. Capital expenditures are anticipated to be approximately $330 million and free cash flow is expected to be approximately $675 million.

Tailwinds

  • Constant currency organic revenue growth is anticipated to be approximately 11%.
  • As reported revenue is expected to increase approximately 12%.
  • Adjusted earnings per diluted share are anticipated to be in the range of $8.55 to $8.75.
  • Capital expenditures are anticipated to be approximately $330 million.
  • Free cash flow is expected to be approximately $675 million.

Headwinds

  • Outlook acknowledges continued supply chain pressure.
  • Outlook acknowledges continued inflation pressure.
  • Adjusted effective tax rate of 22%.
  • Share count of approximately 101 million diluted shares.
  • Net impact of acquisitions and divestitures as well as the anticipated negative impact of foreign currency fluctuations.

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

Historical avgQ4 2022

+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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