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Jun 30, 2022

STERIS Q1 2023 Earnings Report

STERIS's financial performance for Q1 2023 reflected solid revenue growth and strong demand despite supply chain challenges.

Key Takeaways

STERIS announced a 19% increase in revenue, reaching $1.2 billion. Constant currency organic revenue grew by 6%. The company reported an EPS of $1.10 and an adjusted EPS of $1.90.

Revenue increased by 19% as reported, with a 6% constant currency organic growth.

Reported EPS was $1.10, while adjusted EPS reached $1.90.

Healthcare revenue grew by 16% to $698.5 million.

Free cash flow increased to $117.1 million.

Total Revenue
$1.16B
Previous year: $968M
+19.4%
EPS
$1.9
Previous year: $1.76
+8.0%
CC Organic Revenue Growth
6%
Previous year: 21%
-71.4%
Gross Profit
$518M
Previous year: $426M
+21.5%
Cash and Equivalents
$316M
Previous year: $535M
-40.8%
Free Cash Flow
$117M
Previous year: $41.2M
+183.9%
Total Assets
$11.2B
Previous year: $12.1B
-7.5%

STERIS

STERIS

STERIS Revenue by Segment

STERIS Revenue by Geographic Location

Forward Guidance

For fiscal year 2023, STERIS anticipates constant currency organic revenue growth of approximately 10%. As reported revenue is expected to increase approximately 9%. Adjusted earnings per diluted share are now anticipated to be in the range of $8.40 to $8.60.

Positive Outlook

  • Constant currency organic revenue growth is anticipated to be approximately 10%.
  • As reported revenue is expected to increase approximately 9%.
  • Adjusted earnings per diluted share are anticipated to be in the range of $8.40 to $8.60.
  • Demand for our products remains strong.
  • Significant backlog in Healthcare capital equipment.

Challenges Ahead

  • Ongoing supply chain challenges.
  • Procedure volumes somewhat lighter than anticipated.
  • Approximately $100 million in anticipated negative impact of foreign currency fluctuations on as reported revenue.
  • Approximately $0.10 of adverse impact from foreign currency fluctuations on adjusted earnings per diluted share.
  • Slightly lower revenue outlook.

Revenue & Expenses

Visualization of income flow from segment revenue to net income