STERIS (NYSE:STE) Announces Earnings Results

STERIS (NYSE:STE) released its quarterly earnings data on Wednesday. The medical equipment provider reported $2.59 earnings per share for the quarter, topping 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 period in the previous year, the company posted $2.34 earnings per share. The company’s revenue for the quarter was up 7.3% on a year-over-year basis. STERIS updated its FY 2027 guidance to 11.000-11.300 EPS.

STERIS Stock Up 0.1%

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

STERIS Increases Dividend

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

Analysts Set New Price Targets

STE has been the subject of a number of research analyst reports. Piper Sandler reaffirmed an “overweight” rating and issued a $270.00 price target on shares of STERIS in a research note on Thursday, May 21st. KeyCorp decreased their price objective 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 report on Wednesday, May 27th. UBS Group initiated coverage on shares of STERIS in a research report on Tuesday, July 28th. They set a “buy” rating and a $275.00 price target on the stock. Finally, Wall Street Zen downgraded shares of STERIS from a “buy” rating to a “hold” rating in a research note on Saturday. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $277.25.

Key STERIS News

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.

Insider Transactions at STERIS

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

Hedge Funds Weigh In On STERIS

A number of hedge funds have recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. increased its holdings in shares of STERIS by 416.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 129 shares of the medical equipment provider’s stock worth $29,000 after purchasing an additional 104 shares in the last quarter. Kemnay Advisory Services Inc. bought a new position in shares of STERIS during the fourth quarter valued at $34,000. DV Equities LLC bought a new position in shares of STERIS during the fourth quarter valued at $35,000. Advisory Services Network LLC purchased a new stake in shares of STERIS during the third quarter valued at $68,000. Finally, MUFG Securities EMEA plc purchased a new stake in shares of STERIS during the second quarter valued at $69,000. 94.69% of the stock is currently owned by hedge funds and other institutional investors.

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.