STERIS (NYSE:STE) Issues Earnings Results

STERIS (NYSE:STE) posted its quarterly earnings results on Wednesday. The medical equipment provider reported $2.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.49 by $0.10, Zacks reports. The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.49 billion. STERIS had a net margin of 13.18% and a return on equity of 14.15%. The company’s revenue for the quarter was up 7.3% on a year-over-year basis. During the same period last year, the firm earned $2.34 EPS. STERIS updated its FY 2027 guidance to 11.000-11.300 EPS.

STERIS Stock Down 5.2%

Shares of NYSE:STE opened at $220.71 on Thursday. The company has a quick ratio of 1.54, a current ratio of 2.09 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $21.51 billion, a P/E ratio of 28.00 and a beta of 0.91. STERIS has a 52-week low of $195.14 and a 52-week high of $269.44. The stock’s fifty day simple moving average is $214.04 and its 200-day simple moving average is $225.66.

STERIS Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a $0.69 dividend. This is an increase from STERIS’s previous quarterly dividend of $0.63. This represents a $2.76 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Friday, September 4th. STERIS’s dividend payout ratio (DPR) is currently 31.78%.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. KeyCorp cut their price target on STERIS from $291.00 to $269.00 and set an “overweight” rating for the company in a research note on Wednesday, May 13th. Wall Street Zen cut shares of STERIS from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Weiss Ratings downgraded shares of STERIS from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 27th. UBS Group started coverage on shares of STERIS in a research report on Tuesday, July 28th. They set a “buy” rating and a $275.00 target price for the company. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $270.00 price target on shares of STERIS in a report on Thursday, May 21st. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $277.25.

Insider Buying and Selling

In related news, Director Richard C. Breeden sold 1,481 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $209.51, for a total value of $310,284.31. Following the completion of the transaction, the director owned 38,964 shares of the company’s stock, valued at approximately $8,163,347.64. The trade was a 3.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP John Adam Zangerle sold 1,419 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $209.28, for a total transaction of $296,968.32. Following the completion of the transaction, the vice president owned 35,259 shares in the company, valued at approximately $7,379,003.52. This trade represents a 3.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 7,328 shares of company stock worth $1,554,051. 1.12% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On STERIS

Several institutional investors and hedge funds have recently modified their holdings of STE. Jones Financial Companies Lllp increased its stake in STERIS by 46.1% in the first quarter. Jones Financial Companies Lllp now owns 1,106 shares of the medical equipment provider’s stock valued at $251,000 after purchasing an additional 349 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in STERIS by 32.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 242,732 shares of the medical equipment provider’s stock valued at $55,015,000 after buying an additional 59,264 shares during the period. Empowered Funds LLC increased its stake in shares of STERIS by 16.1% during the 1st quarter. Empowered Funds LLC now owns 2,303 shares of the medical equipment provider’s stock valued at $522,000 after acquiring an additional 319 shares during the last quarter. Woodline Partners LP increased its stake in shares of STERIS by 40.0% during the 1st quarter. Woodline Partners LP now owns 8,300 shares of the medical equipment provider’s stock valued at $1,881,000 after acquiring an additional 2,372 shares during the last quarter. Finally, Jane Street Group LLC lifted its holdings in shares of STERIS by 38.9% during the 1st quarter. Jane Street Group LLC now owns 20,716 shares of the medical equipment provider’s stock worth $4,695,000 after acquiring an additional 5,803 shares during the period. Hedge funds and other institutional investors own 94.69% of the company’s stock.

Trending Headlines about STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Fiscal Q1 earnings beat estimates: Adjusted EPS was $2.59, above the $2.49-$2.54 consensus range and up from $2.34 a year earlier. Revenue rose 7.3% to approximately $1.50 billion, slightly ahead of expectations. STERIS Q1 Earnings Surpass Estimates
• Positive Sentiment: Growth was broad-based: Healthcare revenue increased 8% to $1.05 billion, Applied Sterilization Technologies rose 6% to $297.6 million, and Life Sciences grew 9% to $146.7 million. Constant-currency organic revenue growth was 6%. STERIS Announces Financial Results for Fiscal 2027 First Quarter
• Positive Sentiment: Long-term capacity expansion: STERIS plans to invest $600 million in a North Carolina formulated-chemistries manufacturing and distribution hub, aimed at supporting sterilization and disinfection demand from healthcare and pharmaceutical customers. Steris to Invest in North Carolina Chemicals Manufacturing Hub
• Neutral Sentiment: Fiscal 2027 outlook was maintained: Adjusted EPS guidance is approximately $11.00-$11.30, around the $11.16 consensus, while revenue guidance remains about $6.4 billion and reflects 7%-8% reported growth. The update offers limited upside versus expectations. STERIS Fiscal 2027 Guidance
• Negative Sentiment: Higher investment and restructuring costs could pressure near-term cash flow: Capital-expenditure guidance increased to roughly $450 million, free-cash-flow guidance was revised to about $800 million, and the new facility and restructuring plan are expected to generate $55 million-$70 million in pretax charges. Operating cash flow also declined year over year to $367.1 million from $420.0 million. STERIS Q1 Revenue Rises 7 Percent

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.