Sotera Health Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Sotera Health Reports Second Quarter 2024 Financial Results
Sotera Health Company (NASDAQ: SHC) reported its financial results for Q2 2024, showcasing robust operational performance across its business segments.
Key Financial Metrics
| Financial Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Revenues | $277 million | $255 million | +8.3% |
| Net Income (GAAP) | $9 million | $24 million | -62.5% |
| Earnings Per Share (GAAP) | $0.03 | $0.08 | -62.5% |
| Adjusted EBITDA(1) | $137 million | $128 million | +6.9% |
| Adjusted EPS(1) | $0.19 | $0.20 | -5.0% |
Sotera Health’s financial performance showed a solid increase in net revenues and adjusted EBITDA, driven by strong segment performance despite a marked decline in GAAP net income and EPS due to refinancing charges and higher interest expenses.
Revenue by Business Segment
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change | Exceeded Guidance |
|---|---|---|---|---|
| Sterigenics | $176 million | $166 million | +5.9% | Yes |
| Nordion | $41 million | $32 million | +29.0% | Yes |
| Nelson Labs | $59 million | $57 million | +4.0% | Yes |
The revenue growth across all segments was notable. Sterigenics saw favorable pricing and volume growth. Nordion had significant year-over-year growth due to the timing of reactor harvest schedules and favorable pricing. Nelson Labs, however, experienced higher labor costs which affected segment income, despite revenue increases.
Comments from Company Officers
"We are pleased to have achieved both revenue and Adjusted EBITDA growth for the second quarter with all three business segments reporting volume increases," stated Chairman and CEO, Michael B. Petras, Jr. "With the first half of the year completed and as the market continues to slowly stabilize, we are reaffirming our 2024 outlook."
Forward Guidance
Sotera Health reaffirmed its 2024 outlook, expecting net revenue and adjusted EBITDA growth in the range of 4.0% to 6.0%. Adjusted EPS is projected to be between $0.67 and $0.75.
Stock Price Movement
The stock price saw an after-event change of -3.01% following the earnings release.
Overall, Sotera Health demonstrated solid revenue growth across its segments while navigating through interest expense challenges and restructuring refinanced debt. The reaffirmation of its 2024 outlook signals confidence in sustained performance for the remainder of the year.