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Mar 31, 2024
Sotera Health Q1 2024 Earnings Report
Sotera Health's first quarter performance in 2024 showed revenue and net income growth.
Key Takeaways
Sotera Health reported a solid start to 2024 with a 12.5% increase in net revenues to $248 million and a rise in net income to $6 million, or $0.02 per diluted share. The company reaffirmed its 2024 outlook, focusing on strategic priorities amidst market headwinds.
Net revenues increased by 12.5% to $248 million compared to Q1 2023.
Net income was $6 million, or $0.02 per diluted share, up from $3 million, or $0.01 per diluted share in Q1 2023.
Adjusted EBITDA increased by 13.7% to $112 million compared to Q1 2023.
Adjusted EPS was $0.13, consistent with Q1 2023.
Sotera Health
Sotera Health
Sotera Health Revenue by Segment
Forward Guidance
Sotera Health reaffirmed its 2024 outlook, initially provided on February 27, 2024.
Positive Outlook
- Net revenues and Adjusted EBITDA growth in the range of 4.0% to 6.0%.
- Interest Expense in the range of $170 million to $180 million.
- Tax rate applicable to Adjusted Net Income in the range of 31.5% to 34.5%.
- Adjusted EPS in the range of $0.67 to $0.75.
- A weighted-average fully diluted share count in the range of 283 million to 285 million shares.
Challenges Ahead
- Capital expenditures in the range of $205 million to $225 million.
- Supply chain continuity, particularly for the supply of EO and Cobalt-60.
- The impact of inflationary trends including their impact on energy prices and the supply of labor.
- The expectation that exchange rates as of March 31, 2024 remain constant for the remainder of 2024.
- Uncertainties caused by changes to the regulatory landscape, restructuring items and certain fair value measurements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income