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Sep 30, 2022
Sotera Health Q3 2022 Earnings Report
Sotera Health's Q3 2022 financial performance reflected revenue growth and adjusted EPS improvement.
Key Takeaways
Sotera Health reported a 10% increase in net revenues to $249 million for Q3 2022, with net income at $25 million, or $0.09 per diluted share. Adjusted EPS improved to $0.23. The company is adjusting its full-year 2022 net revenue growth outlook to 7% - 8% and Adjusted EBITDA growth to 4% - 6%.
Net revenues for Q3 2022 increased by 10% to $249 million compared to Q3 2021.
Net income for Q3 2022 was $25 million, or $0.09 per diluted share.
Adjusted EBITDA for Q3 2022 increased by 7% to $125 million compared to Q3 2021.
Adjusted EPS for Q3 2022 improved to $0.23, up from $0.21 in Q3 2021.
Sotera Health
Sotera Health
Sotera Health Revenue by Segment
Revenue by Segment
Sterigenics Revenue
CapyFin.comNordion Revenue
CapyFin.comNelson Labs Revenue
CapyFin.com Forward Guidance
Sotera Health is updating its 2022 outlook with net revenues expected to be in the range of $995 million to $1.005 billion and Adjusted EBITDA in the range of $500 million to $510 million.
Positive Outlook
- Net revenues in the range of $995 million to $1.005 billion, representing growth of 7% to 8%, compared to the prior year.
- Adjusted EBITDA in the range of $500 million to $510 million, representing growth of 4% to 6%, compared to the prior year.
- Tax rate applicable to Adjusted Net Income of approximately 28%.
- Adjusted EPS of $0.91 to $0.95.
- Net leverage reduction in the range of 3.2x to 3.3x.
Challenges Ahead
- Incremental 1% foreign exchange headwind.
- Slower recovery in certain testing categories at Nelson Labs.
- Supply chain continuity risks, particularly for the supply of ethylene oxide (“EO”) and cobalt-60 (“Co-60”).
- Impact of inflationary trends including their impact on energy prices and the supply of labor.
- Impact of the COVID-19 pandemic including the rate of recoveries of elective procedures and new product development testing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income