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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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