Loading...
•
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.
Revenue by Segment
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”).
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...