STERIS plc Poised for Strong Q4 Earnings Report Despite Market Trends
With a market cap of $20.9 billion, STERIS plc (STE) specializes in infection prevention products and services globally. Founded in 1985 and headquartered in Mentor, Ohio, STERIS operates through three main segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The company will report its Q4 earnings on Wednesday, May 14, after market close.
Analysts Expect Positive Earnings Growth
Ahead of the earnings announcement, analysts forecast an EPS of $2.58 per share, which represents a 7.1% increase from the previous year’s profit of $2.41 per share. Over the last four quarters, STERIS has either exceeded or met analysts’ earnings estimates. Notably, the company reported an EPS of $2.32 in the most recent quarter, aligning with analyst expectations.
Future EPS Growth Expectations
Looking ahead to fiscal 2025, analysts predict an EPS of $9.09, marking a 10.9% rise from the $8.20 reported in fiscal 2024. Furthermore, projections for fiscal 2026 suggest a year-over-year growth of 9.2%, with an expected EPS of $9.93.
Stock Performance Outpaces Market Indices
Over the past year, STERIS shares have increased by 11.6%, outperforming the S&P 500 Index, which gained 9.4%, and the Health Care Select Sector SPDR Fund (XLV), which declined by 1.3% during the same period.
Latest Earnings and Analyst Sentiment
Shares of STERIS climbed slightly after the company released its Q3 earnings on February 5. Revenue for the quarter rose by 1.4% year-over-year, totaling $1.4 billion. Additionally, the gross margin expanded by 138 basis points to 44.5%. The strong operating cash flow of $887.3 million and full-year EPS guidance in the $9.05 to $9.15 range have further bolstered investor confidence.
Analysts generally hold a positive outlook on STERIS stock, assigning a “Moderate Buy” rating. Among six analysts covering the stock, four recommend a “Strong Buy” while two suggest a “Hold.” The average price target of $258 implies a potential upside of 14.7% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
