Free Post Earnings Research Report: Steris’ Revenues Grew 2%; Adjusted EPS Advanced 14%

Stock Monitor: GenMark Diagnostics Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 7, 2018 / Active-Investors.com has just released a free earnings report on Steris PLC (NYSE: STE). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=STE. The Company reported its third quarter fiscal 2018 operating and financial results on February 07, 2018. The medical products maker exceeded earnings expectations and raised its adjusted earnings guidance. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for GenMark Diagnostics, Inc. (NASDAQ: GNMK), which also belongs to the Healthcare sector as the Company Steris. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Steris most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=STE

Earnings Highlights and Summary

For the third quarter ended December 31, 2017, Steris reported revenues of $661.9 million, up 2% compared to $646.8 million in Q3 FY17, with a revenue growth limited by divestitures. The Company’s revenue numbers fell short of analysts’ estimates of $665.5 million.

Steris’ net income was $94.8 million, or $1.11 per diluted share, in Q3 FY18 compared to a net loss of $5.0 million, or $0.06 loss per diluted share in Q3 FY17. The Company’s reported quarter results included a net tax benefit of $25.7 million, or $0.30 per diluted share, from the re-measurement of US deferred tax balances and the related taxation of unremitted earnings of non-US subsidiaries as a result of the new US Tax Cut and Jobs Act 2017 (TCJA).

On an adjusted basis, Steris’ net income was $96.3 million, or $1.12 per diluted share, in Q3 FY18 compared to $84.0 million, or $0.98 per diluted share, in Q3 FY17. The Company’s reported quarterly adjusted earnings figures reflected a solid organic revenue growth, a continued margin expansion, and a lower effective tax rate. Steris’ earnings beat Wall Street’s estimates of $1.07 per share.

Segment Results

During Q3 FY18, Steris’ Healthcare Products segment’s revenues were marginally higher at $324.90 million compared to $324.53 million in Q3 FY17. The segment’s consumable revenues grew 9% and service revenues grew 6%, offset by a decline in capital equipment revenues of 9%. The segment’s operating income was $64.0 million in the reported quarter compared to $65.7 million in the year-ago same period. The decline in profitability was primarily due to flat revenue and higher allocated corporate costs.

For Q3 FY18, Steris’ Healthcare Specialty Services segment’s revenues were $117.4 million, down 9% compared to $129.2 million in Q3 FY17, reflecting the impact of the linen divestitures in the reported quarter. The segment’s constant currency organic revenue grew 9% on a y-o-y basis. The segment’s operating income soared 242% to $6.5 million in Q3 FY18 compared to $1.9 million in Q3 FY17, primarily due to a continued improvement within IMS in North America.

During Q3 FY18, Steris’ Applied Sterilization Technologies segment’s revenues increased 13% to $128.7 million compared to $114.4 million in Q3 FY17. The segment’s constant currency organic revenues increased 9%, primarily due to an increased volume from the segment`s core medical device customers. The segment’s operating income increased 18% to $43.2 million in Q3 FY18 compared to $36.6 million in Q3 FY17, due to the revenue growth and changes in currency rates.

During Q3 FY18, Steris’ Life Sciences segment’s revenues jumped 16% to $90.9 million compared to $78.6 million in Q3 FY17, with a growth across the segment. The segment’s capital equipment revenues increased 33%, consumable revenues grew 12%, and service revenues improved by 8%. The segment’s operating income improved 14% to $27.2 million compared to $23.9 million in the prior year’s corresponding quarter.

Cash Flow

For the first nine months of the fiscal year 2018, Steris’ net cash provided by operations was $327.9 million compared to $289.4 million in the first nine months of FY17. The Company’s free cash flow was $216.4 million for the first nine months of FY18 compared to $182.0 million in the year-ago corresponding period. The improvement in free cash flow was primarily due to higher earnings and lower requirements to fund operating assets and liabilities.

Fiscal 2018 Outlook

For FY18, Steris is forecasting a constant currency organic revenue growth in the range of 4% – 5%. The Company raised its adjusted earnings per diluted share to be in the band of $4.10 – $4.16, which assumes operational earnings at the high end of the prior outlook and an adjusted effective tax rate of approximately 25%. The prior outlook for adjusted earnings per diluted share was $3.96 – $4.09. Steris’ free cash flow is expected to be approximately $300 million for FY18.

Stock Performance Snapshot

March 06, 2018 – At Tuesday’s closing bell, Steris’ stock climbed 2.45%, ending the trading session at $93.15.

Volume traded for the day: 507.06 thousand shares, which was above the 3-month average volume of 368.30 thousand shares.

Stock performance in the last month – up 2.81%; previous three-month period – up 3.90%; past twelve-month period – up 34.11%; and year-to-date – up 6.49%

After yesterday’s close, Steris’ market cap was at $7.94 billion.

Price to Earnings (P/E) ratio was at 32.78.

The stock has a dividend yield of 1.33%.

The stock is part of the Healthcare sector, categorized under the Medical Appliances & Equipment industry.

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