SHC Earnings Prediction
The chart below shows how SHC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SHC sees a +3.16% change in stock price 10 days leading up to the earnings, and a +0.88% change 10 days following the report. On the earnings day itself, the stock moves by -1.84%. This data can give you a slight idea of what to expect for the next quarter's release.
SHC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
285.47M
8.47%
3.21%
Gross Margin
49.92%
0.89%
0.50%
Operating Margin
28.20%
-2.49%
1.55%
Net Margin
5.95%
214.64%
88.29%
EPS
0.06
220.00%
100.00%
No Data Available
SHC Earnings Analysis
Sotera Health Company Common Stock Corporation (SHC.O) Earnings Conference Call
Positive
Q3 Revenue Increase: 1. Revenue Growth: Sotera Health reported a total revenue increase of 8.5% year-over-year, reaching $285 million for Q3 2024, with an 8.9% increase on a constant currency basis.
Adjusted EBITDA Improvement: 2. Adjusted EBITDA Increase: The company achieved a 9% increase in adjusted EBITDA, totaling $146 million, with adjusted EBITDA margins improving to 51.3%, up 23 basis points from the previous year.
Nordion Revenue Surge: 3. Nordion Segment Performance: Nordion experienced a remarkable 28% year-over-year revenue growth, driven by favorable timing in reactor harvest schedules, resulting in $51 million in revenue for the quarter.
Revenue and Income Growth: 4. Nelson Labs Growth: Nelson Labs saw a 7% increase in revenue, reaching approximately $59 million, with segment income rising by 9% to $19 million and segment income margins improving to 31.8% compared to the previous year.
Liquidity Strength: 5. Strong Liquidity Position: Sotera Health maintained a robust liquidity position with over $700 million available at the end of Q3 2024, including $307 million in unrestricted cash and $400 million in revolving credit capacity.
Negative
Segment Income Margin Decline: 1. Declining Segment Income Margins: Sterigenics' segment income margins decreased by approximately 70 basis points to 54.7% compared to the prior year quarter, primarily due to higher employee compensation costs.
Revenue Decline Forecast: 2. Negative Outlook for Nelson Labs: Nelson Labs anticipates a mid-single-digit revenue decline in Q4 2024 compared to the prior year quarter, driven by a decrease in expert advisory services revenue.
Capital Expenditures Decrease: 3. Increased Capital Expenditures: The company now expects capital expenditures to fall in the range of $175 million to $185 million for 2024, indicating a decrease due to timing issues related to vendor performance and cobalt development projects.
Interest Expense Stability: 4. High Interest Expense: Reported interest expense for Q3 2024 was $42 million, remaining unchanged from the same period last year, indicating a persistent financial burden.
Currency Exchange Impact: 5. Unfavorable Foreign Currency Impact: Sterigenics' revenue growth was partially offset by unfavorable changes in foreign currency exchange rates, which had a negative impact of 60 basis points on revenue growth.
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SHC Earning Call Sentiment
Sotera Health Company (SHC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SHC.O
0%Positive
The earnings call shows solid financial performance with year-over-year revenue and income growth across all segments. Despite some concerns about future volume in Nelson and Sterigenics, the overall outlook is positive, with optimistic guidance on volume recovery and favorable pricing trends. The Q&A section highlighted confidence in regulatory challenges and growth in pharma testing, which adds to the positive sentiment. The company's financial health is strong, with improved net income and leverage ratio, and robust liquidity. Given the small market cap, the positive trends and strong financial metrics suggest a stock price increase of 2% to 8%.
