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STERIS
🇮🇪 NYSE:STE
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•
Mar 31, 2023

STERIS Q4 2023 Earnings Report

STERIS reported a strong Q4 2023, with revenue up 14% and adjusted EPS of $2.30, driven by robust performance across its Healthcare and Applied Sterilization Technologies segments. The company provided a positive outlook for fiscal year 2024, anticipating continued growth and improved financial results.

Key Takeaways

STERIS announced strong financial results for its fiscal 2023 fourth quarter, with revenue increasing by 14% to $1.38 billion. Net income was $187.2 million, or $1.88 per share, while adjusted EPS reached $2.30. The company's performance was driven by strong growth in its Healthcare and Applied Sterilization Technologies segments. STERIS provided a positive outlook for fiscal 2024, expecting continued revenue and earnings growth.

Revenue increased 14% to $1.38 billion, with constant currency organic revenue growth of 16%.

Reported earnings per share (EPS) was $1.88, and adjusted EPS was $2.30.

Healthcare revenue grew by 20%, driven by improvements in capital equipment, consumable, and service revenue.

Applied Sterilization Technologies (AST) revenue increased by 7%, driven by increased demand from core medical device customers.

Total Revenue
$1.39B
Previous year: $1.21B
+14.4%
EPS
$2.3
Previous year: $2.04
+12.7%
CC Organic Revenue Growth
16%
Previous year: 11%
+45.5%
Gross Profit
$588M
Previous year: $572M
+2.9%
Cash and Equivalents
$208M
Previous year: $348M
-40.2%
Free Cash Flow
$410M
Previous year: $399M
+2.7%
Total Assets
$10.8B
Previous year: $11.5B
-5.5%

STERIS

STERIS

STERIS Revenue by Segment

Forward Guidance

For fiscal 2024, STERIS expects as reported revenue to increase 7-8% and adjusted earnings per diluted share to be in the range of $8.55 to $8.75.

Positive Outlook

  • As reported revenue is expected to increase 7-8%.
  • Constant currency organic revenue growth is anticipated to increase 6-7%.
  • Adjusted earnings per diluted share are anticipated to be in the range of $8.55 to $8.75.
  • Effective tax rate of approximately 23%.
  • Free cash flow is expected to be approximately $700 million.

Challenges Ahead

  • Capital expenditures are anticipated to be approximately $375 million.
  • Potential for increased pressure on pricing or costs that leads to erosion of profit margins, including as a result of inflation.
  • The possibility that market demand will not develop for new technologies, products or applications or services, or business initiatives will take longer, cost more or produce lower benefits than anticipated.
  • The possibility of delays in receipt of orders, order cancellations, or delays in the manufacture or shipment of ordered products, due to supply chain issues or otherwise, or in the provision of services.
  • The potential impact of the acquisition of Cantel Medical on relationships, including with suppliers, Customers, employees and regulators

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View STERIS