Steris Q2 Earnings Review: An Analysis of Key Metrics

In the quarter ending September 2024, Steris (STE) reported a revenue of $1.33 billion, which reflects a slight decline of 1% compared to the same time last year. The company's earnings per share (EPS) stood at $2.14, up from $2.03 in the previous year's quarter.

This revenue figure was slightly below the Zacks Consensus Estimate, which was set at $1.34 billion, resulting in a surprise of -0.58%. On the other hand, Steris achieved an EPS surprise of +1.42%, as the consensus estimate for EPS was $2.11.

While investors pay attention to overall revenue and earnings to gauge performance and forecast stock movements, examining key metrics provides more in-depth insights into a company's core operations.

Understanding these metrics can lead to a better assessment of both top-line and bottom-line performance, enabling investors to make more informed predictions about a stock's potential price changes.

Healthcare Revenue Insights

Here's a detailed look at Steris’ performance indicators as reported for the recent quarter, particularly comparing them with Wall Street expectations:

• Healthcare Revenues: Achieved $944.23 million, compared to an average estimate of $950.73 million from three analysts, reflecting an 8.5% increase year-over-year.
• Healthcare Products - Consumables: Generated $341.71 million against an expectation of $338.19 million, marking an 11.7% year-over-year growth.
• Healthcare Products - Capital Equipment: Reported $249.73 million, which was below the analysts' estimate of $267.10 million, and represented a 2% decline from last year.
• Healthcare Products - Services: Reached $352.79 million against an estimated $342.16 million, resulting in a 14.1% growth compared to the prior year.
• Life Sciences Revenue: Came in at $127.95 million, slightly lower than the estimated $132.97 million, with a year-over-year decrease of 3.9%.
• Applied Sterilization Technologies: Reported $256.74 million surpassing the anticipated $253.02 million, marking a 9.2% rise from the previous year.
• Life Sciences - Services: Generated $32.81 million vs. an expected $36.33 million, reflecting a 14.2% decline year-over-year.
• Life Sciences - Capital Equipment: Achieved $23.01 million against the $31.04 million estimate, a significant decline of 35.1% from last year.
• Life Sciences - Consumables: Reported $72.13 million, exceeding the estimate of $67.01 million, with a solid growth of 21.4% compared to the year-ago quarter.
• Operating Income - Healthcare: Stood at $228.01 million, above the average estimate of $220.37 million.
• Operating Income - Corporate and Other: Reported -$97.13 million, slightly better than the expected -$98.11 million.
• Operating Income - Applied Sterilization Technologies: Registered $109.90 million versus the target of $119.53 million.

Market Performance Overview

Over the past month, Steris shares have increased by 0.1%, in contrast to a 0.7% improvement in the Zacks S&P 500 composite. Currently, Steris holds a Zacks Rank #4 (Sell), suggesting that it might not perform as well as the broader market in the near future.

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