STE Earnings Prediction
The chart below shows how STE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STE sees a -0.39% change in stock price 10 days leading up to the earnings, and a +2.01% change 10 days following the report. On the earnings day itself, the stock moves by -0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
STE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.40B
14.77%
3.97%
Gross Margin
43.18%
0.68%
-2.35%
Operating Margin
16.40%
1.36%
8.47%
Net Margin
10.10%
-0.39%
16.49%
EPS
1.42
14.52%
22.41%
No Data Available
STE Earnings Analysis
STERIS plc Corporation (STE.N) Earnings Conference Call
Positive
Revenue Growth Analysis: Total revenue grew 6% in the third quarter, with constant currency organic revenue also increasing by 6%, driven by volume and a 240 basis point price increase.
Gross Margin Improvement: Gross margin improved by 90 basis points year-over-year to 44.6%, supported by positive pricing and productivity that offset labor inflation.
Earnings Per Share Growth: Adjusted earnings per diluted share rose to $2.32, marking an 11% increase compared to the previous year, reflecting strong earnings growth throughout the year.
Healthcare Revenue Growth: Healthcare constant currency organic revenue increased by 7%, driven by strong recurring revenue streams and a robust healthcare backlog of $435 million, with orders growing over 10%.
Free Cash Flow Performance: Free cash flow for the first nine months of fiscal 2025 reached $588 million, positioning the company well to meet its full-year guidance of approximately $700 million.
Negative
EBIT Margin Decline: EBIT margin decreased 10 basis points to 23.3% of revenue compared with last year's third quarter, indicating a decline in profitability.
Litigation Expense Impact: Litigation expenses associated with the ethylene oxide trial accounted for over $10,000,000 of additional expense year over year in the third quarter, impacting overall financial performance.
Increased Tax Rate Impact: The adjusted effective tax rate increased to 24.5% due to unfavorable discrete items, which negatively affected net income.
Healthcare Equipment Revenue Decline: Healthcare capital equipment revenue declined 5% in the quarter, primarily due to the timing of shipments, reflecting operational challenges.
Life Sciences Revenue Decline: Constant currency organic revenue declined 1% for the Life Sciences group in the quarter, driven by a decrease in capital equipment revenue, indicating weakness in this segment.
STE FAQs
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STE Earning Call Sentiment
Earnings call transcript: STERIS plc Q3 2024 sees revenue beat, EPS steady
STE.N
-0.1%Positive
The earnings call summary presents a mixed picture: strong growth in AST and healthcare segments, but declines in life sciences and capital equipment revenue. The Q&A highlighted optimism in bioprocessing demand but revealed management's vague responses on tariffs and future margins, creating uncertainty. Flat profit margins and expected legal expenses are concerns. Overall, the positive and negative factors offset each other, leading to a neutral sentiment.
