STERIS (NYSE:STE) Announces Earnings Results, Beats Estimates By $0.10 EPS

STERIS (NYSE:STE) released its quarterly earnings results on Wednesday. The medical equipment provider reported $2.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.49 by $0.10, Zacks reports. STERIS had a return on equity of 14.15% and a net margin of 13.18%.During the same quarter last year, the firm earned $2.34 earnings per share. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. STERIS updated its FY 2027 guidance to 11.000-11.300 EPS.

STERIS Price Performance

Shares of NYSE STE traded up $0.30 during midday trading on Wednesday, reaching $233.15. 923,106 shares of the stock traded hands, compared to its average volume of 739,470. The company’s 50 day moving average is $214.04 and its 200 day moving average is $225.66. STERIS has a one year low of $195.14 and a one year high of $269.44. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.09 and a quick ratio of 1.54. The stock has a market capitalization of $22.72 billion, a PE ratio of 29.40 and a beta of 0.91.

STERIS Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.69 per share. The ex-dividend date is Friday, September 4th. This represents a $2.76 dividend on an annualized basis and a dividend yield of 1.2%. This is an increase from STERIS’s previous quarterly dividend of $0.63. STERIS’s dividend payout ratio is currently 31.78%.

Key Headlines Impacting STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Earnings exceeded expectations: STERIS reported adjusted earnings of $2.59 per share, above the $2.49–$2.54 analyst consensus and up from $2.34 a year earlier. Revenue rose 7.3% year over year to approximately $1.5 billion. Steris Q1 Earnings Surpass Estimates
• Positive Sentiment: Broad-based operating growth: Healthcare revenue increased 8% to $1.05 billion, Applied Sterilization Technologies revenue rose 6% to $297.6 million, and Life Sciences revenue grew 9% to $146.7 million. Constant-currency organic revenue growth was 6%.
• Positive Sentiment: Growth investment supports longer-term prospects: STERIS plans to invest $600 million in a North Carolina formulated-chemistries manufacturing and distribution center to support sterilization and disinfection demand from healthcare and pharmaceutical customers. Steris to Invest in North Carolina Manufacturing Hub
• Neutral Sentiment: Fiscal 2027 outlook was maintained: The company reiterated revenue growth guidance of 7% to 8% and adjusted EPS guidance of $11.10 to $11.30, broadly in line with analyst expectations. Capital expenditures are expected to increase to approximately $450 million, while free-cash-flow guidance is about $800 million.
• Negative Sentiment: Near-term costs and cash-flow pressures: The North Carolina project and related restructuring are expected to generate approximately $55 million to $70 million in pretax charges over time. Operating cash flow declined to $367.1 million from $420.0 million in the prior-year quarter, while higher capital spending could weigh on near-term free cash flow.
• Negative Sentiment: Insider selling may temper sentiment: Company insiders reported five open-market sales and no purchases over the past six months, although these transactions are not necessarily tied to the quarterly results.

Analyst Ratings Changes

A number of research firms have recently weighed in on STE. UBS Group assumed coverage on STERIS in a research report on Tuesday, July 28th. They set a “buy” rating and a $275.00 price objective on the stock. KeyCorp reduced their target price on shares of STERIS from $291.00 to $269.00 and set an “overweight” rating for the company in a report on Wednesday, May 13th. Weiss Ratings cut shares of STERIS from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 27th. Piper Sandler reaffirmed an “overweight” rating and set a $270.00 price target on shares of STERIS in a report on Thursday, May 21st. Finally, Wall Street Zen lowered shares of STERIS from a “buy” rating to a “hold” rating in a research report on Saturday. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, STERIS presently has an average rating of “Moderate Buy” and a consensus price target of $277.25.

Insider Buying and Selling

In related news, Director Richard C. Breeden sold 1,481 shares of the company’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $209.51, for a total transaction of $310,284.31. Following the sale, the director owned 38,964 shares of the company’s stock, valued at $8,163,347.64. This represents a 3.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP John Adam Zangerle sold 1,419 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $209.28, for a total transaction of $296,968.32. Following the transaction, the vice president owned 35,259 shares of the company’s stock, valued at $7,379,003.52. This trade represents a 3.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 7,328 shares of company stock worth $1,554,051. Insiders own 1.12% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. T. Rowe Price Investment Management Inc. increased its stake in STERIS by 40.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 12,484 shares of the medical equipment provider’s stock worth $3,165,000 after acquiring an additional 3,607 shares during the last quarter. Compound Planning Inc. bought a new stake in shares of STERIS in the 4th quarter valued at approximately $220,000. Invesco Ltd. lifted its stake in shares of STERIS by 10.2% in the 4th quarter. Invesco Ltd. now owns 1,410,612 shares of the medical equipment provider’s stock valued at $357,618,000 after purchasing an additional 130,470 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its holdings in shares of STERIS by 39.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 20,066 shares of the medical equipment provider’s stock worth $5,087,000 after purchasing an additional 5,644 shares during the period. Finally, EP Wealth Advisors LLC bought a new position in shares of STERIS during the 4th quarter valued at approximately $720,000. Institutional investors own 94.69% of the company’s stock.

STERIS Company Profile

STERIS Corporation (NYSE: STE) is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.