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

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

STERIS Stock Performance

STE traded up $0.30 during midday trading on Wednesday, reaching $233.15. The company had a trading volume of 923,106 shares, compared to its average volume of 739,470. The company has a quick ratio of 1.54, a current ratio of 2.09 and a debt-to-equity ratio of 0.25. The business has a 50-day moving average of $214.04 and a two-hundred day moving average of $225.66. The company has a market cap of $22.72 billion, a P/E ratio of 29.40 and a beta of 0.91. STERIS has a 1 year low of $195.14 and a 1 year high of $269.44.

STERIS Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be issued a dividend of $0.69 per share. This is a boost from STERIS’s previous quarterly dividend of $0.63. This represents a $2.76 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, September 4th. STERIS’s dividend payout ratio is presently 31.78%.

Insider Activity

In related news, Director Richard C. Breeden sold 1,481 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $209.51, for a total value of $310,284.31. Following the completion of the sale, the director directly owned 38,964 shares of the company’s stock, valued at approximately $8,163,347.64. This represents a 3.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Daniel A. Carestio sold 3,054 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $214.64, for a total transaction of $655,510.56. Following the sale, the chief executive officer owned 65,021 shares in the company, valued at approximately $13,956,107.44. The trade was a 4.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 7,328 shares of company stock valued at $1,554,051 in the last ninety days. Corporate insiders own 1.12% of the company’s stock.

Hedge Funds Weigh In On STERIS

A number of hedge funds have recently modified their holdings of STE. Hilltop Holdings Inc. purchased a new position in shares of STERIS during the 4th quarter valued at $218,000. Wedbush Securities Inc. purchased a new stake in STERIS in the 4th quarter worth $213,000. Tocqueville Asset Management L.P. purchased a new stake in STERIS in the 3rd quarter worth $205,000. Aptus Capital Advisors LLC bought a new stake in STERIS during the fourth quarter valued at about $200,000. Finally, Smartleaf Asset Management LLC raised its holdings in STERIS by 20.3% during the fourth quarter. Smartleaf Asset Management LLC now owns 646 shares of the medical equipment provider’s stock valued at $165,000 after acquiring an additional 109 shares during the period. 94.69% of the stock is currently owned by institutional investors.

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 Upgrades and Downgrades

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

About STERIS

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.