STERIS (NYSE:STE) Updates FY 2027 Earnings Guidance

STERIS (NYSE:STE) updated its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 11.000-11.300 for the period, compared to the consensus estimate of 11.160. The company issued revenue guidance of $6.4 billion-$6.4 billion, compared to the consensus revenue estimate of $6.4 billion.

Analyst Ratings Changes

STE has been the subject of several recent analyst reports. Wall Street Zen cut STERIS from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. UBS Group initiated coverage on shares of STERIS in a research note on Tuesday, July 28th. They issued a “buy” rating and a $275.00 price target on the stock. Piper Sandler reissued an “overweight” rating and set a $275.00 price objective (up from $270.00) on shares of STERIS in a report on Friday. KeyCorp reduced their price objective on shares of STERIS from $291.00 to $269.00 and set an “overweight” rating for the company in a research report on Wednesday, May 13th. Finally, Weiss Ratings cut shares of STERIS from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 27th. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $278.50.

STERIS Stock Performance

Shares of STE traded up $5.92 during midday trading on Friday, reaching $237.70. 539,857 shares of the stock were exchanged, compared to its average volume of 801,440. STERIS has a twelve month low of $195.14 and a twelve month high of $269.44. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.09 and a quick ratio of 1.54. The company has a market capitalization of $23.17 billion, a price-to-earnings ratio of 29.06 and a beta of 0.91. The business’s 50-day moving average price is $214.35 and its 200 day moving average price is $225.40.

STERIS (NYSE:STE) last announced its earnings results on Wednesday, August 5th. The medical equipment provider reported $2.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.49 by $0.10. The firm had revenue of $1.49 billion during the quarter, compared to analysts’ expectations of $1.49 billion. STERIS had a return on equity of 14.39% and a net margin of 13.34%.The business’s revenue was up 7.3% on a year-over-year basis. During the same period in the prior year, the firm earned $2.34 EPS. STERIS has set its FY 2027 guidance at 11.000-11.300 EPS. On average, sell-side analysts expect that STERIS will post 11.17 EPS for the current fiscal year.

STERIS Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.69 per share. This represents a $2.76 dividend on an annualized basis and a dividend yield of 1.2%. This is a boost from STERIS’s previous quarterly dividend of $0.63. The ex-dividend date is Friday, September 4th. STERIS’s payout ratio is 30.81%.

Insider Activity

In related news, VP John Adam Zangerle sold 1,419 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $209.28, for a total value of $296,968.32. Following the completion of the sale, the vice president owned 35,259 shares in the company, valued at $7,379,003.52. This represents a 3.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Daniel A. Carestio sold 3,054 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $214.64, for a total transaction of $655,510.56. Following the sale, the chief executive officer owned 65,021 shares of the company’s stock, valued at approximately $13,956,107.44. This represents a 4.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 7,328 shares of company stock valued at $1,554,051 in the last ninety days. 1.12% of the stock is currently owned by company insiders.

Key STERIS News

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: STERIS reported fiscal Q1 2027 adjusted EPS of $2.59, exceeding the $2.49 consensus estimate and rising from $2.34 a year earlier. Revenue increased 7.3% year over year to $1.49 billion, broadly matching expectations. STERIS earnings report
• Positive Sentiment: Growth was broad-based: Healthcare revenue rose 8% to approximately $1.05 billion, Applied Sterilization Technologies increased 6% to $297.6 million, and Life Sciences grew 9% to $146.7 million. Management maintained its fiscal 2027 outlook for 7%–8% revenue growth and adjusted EPS of approximately $11.00–$11.30. STERIS fiscal 2027 first-quarter results
• Positive Sentiment: STERIS plans to invest approximately $600 million in a North Carolina manufacturing hub expected to create 335 jobs. The facility could expand long-term production capacity and support the company’s formulated-chemistries business. STERIS North Carolina manufacturing investment

Hedge Funds Weigh In On STERIS

Several institutional investors have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. increased its holdings in shares of STERIS by 416.0% in the first quarter. Geneos Wealth Management Inc. now owns 129 shares of the medical equipment provider’s stock valued at $29,000 after purchasing an additional 104 shares during the period. Kemnay Advisory Services Inc. acquired a new stake in shares of STERIS during the fourth quarter worth $34,000. DV Equities LLC purchased a new position in STERIS in the 4th quarter valued at $35,000. Advisory Services Network LLC purchased a new position in STERIS in the 3rd quarter valued at $68,000. Finally, MUFG Securities EMEA plc acquired a new position in STERIS in the 2nd quarter valued at $69,000. Institutional investors and hedge funds own 94.69% of the company’s stock.

STERIS Company Profile

STERIS Corporation (NYSE: STE) is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.