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Dec 31, 2023

STERIS Q3 2024 Earnings Report

STERIS's third quarter results for fiscal year 2024 were announced, featuring revenue growth and increased earnings per share.

Key Takeaways

STERIS announced a 15% increase in revenue to $1.40 billion for the third quarter of fiscal 2024. As reported diluted earnings per share increased to $1.42, and adjusted earnings per share increased to $2.22. The company updated its fiscal 2024 outlook, expecting revenue to increase by 10-11% and adjusted earnings per diluted share to be in the range of $8.60 to $8.70.

Third quarter revenue increased by 15% as reported, with a 10% increase in constant currency organic revenue.

As reported diluted earnings per share increased to $1.42; adjusted earnings per share increased to $2.22.

The Healthcare segment experienced continued momentum, reflecting solid procedure volume growth in the United States and the easing of supply chain constraints.

Revenue outlook for fiscal 2024 has increased due to outperformance within the Healthcare segment.

Total Revenue
$1.4B
Previous year: $1.22B
+14.8%
EPS
$2.22
Previous year: $2.02
+9.9%
CC Organic Revenue Growth
10%
Previous year: 7%
+42.9%
Gross Profit
$603M
Previous year: $521M
+15.6%
Cash and Equivalents
$196M
Previous year: $259M
-24.6%
Free Cash Flow
$172M
Previous year: $114M
+51.5%
Total Assets
$11.4B
Previous year: $10.8B
+5.9%

STERIS

STERIS

STERIS Revenue by Segment

STERIS Revenue by Geographic Location

Forward Guidance

For fiscal year 2024, STERIS expects as reported revenue to increase 10-11%, with constant currency organic revenue growth of 7-8%. Adjusted earnings per diluted share are anticipated to be in the range of $8.60 to $8.70.

Positive Outlook

  • Revenue is expected to increase 10-11%.
  • Constant currency organic revenue growth is expected to be 7-8%.
  • Primary driver of the increase in revenue growth is the outperformance of the Healthcare segment.

Challenges Ahead

  • Adjusted earnings per diluted share are anticipated to be in the range of $8.60 to $8.70, compared with prior expectations of $8.60 to $8.80.
  • Shift in operating income mix from AST to Healthcare.

Revenue & Expenses

Visualization of income flow from segment revenue to net income