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Sep 30, 2022
STERIS Q2 2023 Earnings Report
STERIS's financial performance remained stable with flat revenue, but experienced a net loss due to a significant impairment charge related to the Dental segment. Adjusted EPS remained consistent with the previous year.
Key Takeaways
STERIS plc reported flat revenue at $1.2 billion for Q2 2023, with a net loss of $315.3 million due to a $490.6 million impairment charge in its Dental segment. However, constant currency organic revenue increased by 7%. Adjusted EPS was $1.99, consistent with the previous year.
Revenue remained flat at $1.2 billion compared to the previous year, but constant currency organic revenue increased by 7%.
The company reported a net loss of $315.3 million, or ($3.15) per share, due to a $490.6 million impairment charge related to the Dental segment.
Adjusted EPS was $1.99, consistent with the $1.99 reported in the second quarter of fiscal 2022.
Healthcare revenue declined by 2% to $732.8 million, while Applied Sterilization Technologies (AST) revenue increased by 13% to $232.4 million.
STERIS
STERIS
STERIS Revenue by Segment
STERIS Revenue by Geographic Location
Revenue by Segment
AST Revenue
CapyFin.comLife Sciences Revenue
CapyFin.comRevenue by Geographic Location
Ireland Revenue
CapyFin.comUnited States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
STERIS anticipates currency headwinds impacting revenue and adjusted earnings per share for fiscal year 2023. As a result, as reported revenue is now anticipated to grow 8% compared with prior expectations of 9% growth and free cash flow will be approximately $600 million.
Positive Outlook
- Constant currency organic revenue expectations are unchanged at 10% growth.
- Adjusted earnings per diluted share range of $8.40 to $8.60 remains unchanged.
- Strong backlog
- Increased visibility on supply chain
- Expect a strong second half of capital equipment shipments
Challenges Ahead
- Total revenue impact is now expected to be approximately $150 million due to additional currency headwinds.
- The impact from foreign currency rate changes is now expected to impact adjusted earning per diluted share by approximately $0.15 for fiscal 2023.
- The Company believes the high-end of the adjusted earnings per diluted share range is less likely due to the additional currency headwind.
- As a result of higher than anticipated working capital requirements, in particular inventory, STERIS now anticipates free cash flow will be approximately $600 million for fiscal 2023, a decline from prior expectations of $675 million.
- As reported revenue is now anticipated to grow 8% compared with prior expectations of 9% growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income