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Mar 31, 2021

STERIS Q4 2021 Earnings Report

STERIS's Q4 2021 financial results were announced, with revenue increasing by 6% and adjusted EPS remaining flat year-over-year. The company also provided its outlook for fiscal year 2022, including the impact of the Cantel Medical acquisition.

Key Takeaways

STERIS plc reported a 6% increase in revenue to $873.5 million for the fourth quarter of fiscal year 2021, driven by growth in all three segments. Net income was $87.4 million, or $1.02 per diluted share, while adjusted net income was $140.3 million, or $1.63 per diluted share.

Fourth quarter revenue increased 6% as reported.

Constant currency organic revenue increased 0.3%.

Net income for the fourth quarter was $87.4 million, or $1.02 per diluted share.

Adjusted net income for the fourth quarter was $140.3 million, or $1.63 per diluted share.

Total Revenue
$874M
Previous year: $823M
+6.1%
EPS
$1.63
Previous year: $1.64
-0.6%
CC Organic Revenue Growth
0.3%
Previous year: 8%
-96.3%
Gross Profit
$380M
Previous year: $364M
+4.3%
Cash and Equivalents
$221M
Previous year: $320M
-31.0%
Free Cash Flow
$113M
Previous year: $138M
-18.3%
Total Assets
$6.57B
Previous year: $5.43B
+21.2%

STERIS

STERIS

STERIS Revenue by Segment

Forward Guidance

STERIS expects as reported revenue of approximately $4.5 billion for fiscal 2022. Constant currency organic revenue growth is expected to be in the range of 8-9%. Adjusted earnings per diluted share are anticipated to be in the range of $7.40 - $7.65.

Positive Outlook

  • As reported revenue of approximately $4.5 billion.
  • Constant currency organic revenue growth is expected to be in the range of 8-9%.
  • Currency movements are anticipated to be favorable to revenue by approximately $15 million.
  • Adjusted earnings per diluted share are anticipated to be in the range of $7.40 - $7.65.
  • Free cash flow for fiscal 2022 is expected to be approximately $380 million.

Challenges Ahead

  • Integration and deal related costs primarily for the purchase of Cantel Medical are expected to be approximately $200 million.
  • Capital spending is anticipated to be approximately $320 million for the combined company.
  • The failure to obtain Cantel stockholder approval of the proposed transaction.
  • The possibility that the closing conditions to the proposed transaction may not be satisfied or waived.
  • Delay in closing the proposed transaction or the possibility of non-consummation of the proposed transaction.

Revenue & Expenses

Visualization of income flow from segment revenue to net income