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Mar 31, 2024
STERIS Q4 2024 Earnings Report
STERIS's Q4 2024 performance reflected a 10% increase in total revenue and adjusted EPS of $2.58, despite a net loss due to discontinued operations and restructuring charges.
Key Takeaways
STERIS plc reported a 10% increase in total revenue for Q4 2024, reaching $1.5 billion, driven by strong performance in the Healthcare segment. However, the company experienced a U.S. GAAP net loss of $1.4 million, or ($0.01) per diluted share, due to a pre-tax loss from the reclassification of the Dental segment as discontinued operations and charges related to a targeted restructuring program. Adjusted net income for the quarter was $256.3 million, or $2.58 per diluted share.
Total revenue increased by 10% to $1.5 billion compared to Q4 2023.
U.S. GAAP net loss was $1.4 million, or ($0.01) per diluted share, impacted by discontinued operations and restructuring.
Adjusted net income was $256.3 million, or $2.58 per diluted share, compared to $229.2 million, or $2.30 per diluted share in the previous year’s fourth quarter.
Healthcare segment revenue grew by 14%, driven by capital equipment, consumable, and service revenue growth.
STERIS
STERIS
STERIS Revenue by Segment
Revenue by Segment
Healthcare Revenue
CapyFin.comAST Revenue
CapyFin.comLife Sciences Revenue
CapyFin.com Forward Guidance
For fiscal year 2025, STERIS expects as reported revenue from continuing operations to increase 6.5-7.5%. Adjusted earnings per diluted share from continuing operations are anticipated to be in the range of $9.05 to $9.25.
Positive Outlook
- As reported revenue from continuing operations expected to increase 6.5-7.5%.
- Constant currency organic revenue from continuing operations anticipated to increase 6-7%.
- Adjusted earnings per diluted share from continuing operations are anticipated to be in the range of $9.05 to $9.25.
- Effective tax rate of approximately 23% is assumed.
- Free cash flow is expected to be approximately $700 million.
Challenges Ahead
- Capital expenditures are anticipated to be approximately $360 million.
- Divestiture of Controlled Environment Services business will exclude ~$35M from constant currency organic revenue growth.
- Targeted restructuring plan with approximately $100 million in pre-tax restructuring charges.
- Restructuring charges will be excluded from adjusted earnings per diluted share.
- Unspecified risks and uncertainties detailed in the cautionary statement regarding forward-looking information.
Revenue & Expenses
Visualization of income flow from segment revenue to net income