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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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