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Dec 31, 2022
STERIS Q3 2023 Earnings Report
Announced financial results for fiscal 2023 third quarter, featuring a 1% revenue increase and 7% constant currency organic revenue growth.
Key Takeaways
STERIS plc reported a 1% increase in revenue to $1.22 billion for the third quarter of fiscal 2023, with a 7% constant currency organic revenue growth. Net earnings were $123.8 million, or $1.24 per share, while adjusted EPS reached $2.02. The company updated its fiscal 2023 outlook, anticipating revenue growth of 6% and adjusted EPS in the range of $8.00 to $8.10.
Revenue increased by 1% as reported, with a 7% constant currency organic revenue growth.
Reported earnings per share (EPS) stood at $1.24, while adjusted EPS reached $2.02.
Healthcare segment saw a 1% revenue increase, driven by capital equipment and service growth.
Applied Sterilization Technologies (AST) revenue increased by 3%, fueled by medical device customer demand.
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 as reported revenue to grow 6% and adjusted earnings per diluted share to be in the range of $8.00 to $8.10. Free cash flow is expected to be approximately $500 million for fiscal 2023.
Positive Outlook
- Revenue is anticipated to grow 6%.
- Currency is now anticipated to negatively impact revenue by approximately $110 million this fiscal year.
- Constant currency organic revenue is now anticipated to grow approximately 7%.
- Adjusted earnings per diluted share are now anticipated to be in the range of $8.00 to $8.10.
- Free cash flow will be approximately $500 million for fiscal 2023.
Challenges Ahead
- As reported revenue is now anticipated to grow 6% compared with prior expectations of 8% growth.
- Currency is now anticipated to negatively impact revenue by approximately $110 million this fiscal year, a reduction from prior expectations of approximately $150 million.
- Constant currency organic revenue is now anticipated to grow approximately 7% compared with prior expectations of 10%.
- Reflecting the lower revenue, adjusted earnings per diluted share are now anticipated to be in the range of $8.00 to $8.10.
- As a result of higher than anticipated working capital requirements, in particular inventory and accounts receivable, STERIS now anticipates free cash flow will be approximately $500 million for fiscal 2023, a decline from prior expectations of $600 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income