NYSE$STE

STERIS PLC · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

STERIS reported a strong Q4 2023, with revenue up 14% and adjusted EPS of $2.30, driven by robust performance across its Healthcare and Applied Sterilization Technologies segments. The company provided a positive outlook for fiscal year 2024, anticipating continued growth and improved financial results.

STERIS announced strong financial results for its fiscal 2023 fourth quarter, with revenue increasing by 14% to $1.38 billion. Net income was $187.2 million, or $1.88 per share, while adjusted EPS reached $2.30. The company's performance was driven by strong growth in its Healthcare and Applied Sterilization Technologies segments. STERIS provided a positive outlook for fiscal 2024, expecting continued revenue and earnings growth.

  • Revenue increased 14% to $1.38 billion, with constant currency organic revenue growth of 16%.
  • Reported earnings per share (EPS) was $1.88, and adjusted EPS was $2.30.
  • Healthcare revenue grew by 20%, driven by improvements in capital equipment, consumable, and service revenue.
  • Applied Sterilization Technologies (AST) revenue increased by 7%, driven by increased demand from core medical device customers.

Headline financials

Total Revenue

$1.39B

Previous: $1.21B+14.4%
EPS (adj)

$2.30

Previous: $2.04+12.7%
Const. Curr. Organic Growth

16.0%

Previous: 11.0%+45.5%
Capital Expenditures

$71.4M

Previous: $73.1M-2.2%
Free Cash Flow

$410M

Previous: $399M+2.7%
Net Income

$187M

Previous: $52.1M+259.2%
Operating Income

$225M

Previous: $91.9M+145.4%
Gross Profit

$588M

Previous: $572M+2.9%
Cash & Equivalents

$208M

Previous: $348M-40.2%
Total Assets

$10.8B

Previous: $11.5B-5.5%
Stock-Based Comp

$9.09M

Previous: $9.75M-6.7%

Revenue & EPS history

STERIS · Revenue · Quarterly

$1.39B

Q4 2023+14.4%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
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 2024, STERIS expects as reported revenue to increase 7-8% and adjusted earnings per diluted share to be in the range of $8.55 to $8.75.

Tailwinds

  • As reported revenue is expected to increase 7-8%.
  • Constant currency organic revenue growth is anticipated to increase 6-7%.
  • Adjusted earnings per diluted share are anticipated to be in the range of $8.55 to $8.75.
  • Effective tax rate of approximately 23%.
  • Free cash flow is expected to be approximately $700 million.

Headwinds

  • Capital expenditures are anticipated to be approximately $375 million.
  • Potential for increased pressure on pricing or costs that leads to erosion of profit margins, including as a result of inflation.
  • The possibility that market demand will not develop for new technologies, products or applications or services, or business initiatives will take longer, cost more or produce lower benefits than anticipated.
  • The possibility of delays in receipt of orders, order cancellations, or delays in the manufacture or shipment of ordered products, due to supply chain issues or otherwise, or in the provision of services.
  • The potential impact of the acquisition of Cantel Medical on relationships, including with suppliers, Customers, employees and regulators

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

+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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