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Mentor, Ohio-based STERIS plc (STE) provides infection prevention products and services. Valued at $22.90 billion by market cap, the company offers sterilizers, washers, surgical tables, lights and equipment management systems, and endoscopy accessories. The provider of infection prevention products and services is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Tuesday, Aug. 6.
Ahead of the event, analysts expect STE to report a profit of $2.03 per share on a diluted basis, up 1.5% from $2 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect STE to report EPS of $9.24, up 12.7% from $8.20 in fiscal 2024.
STE stock has underperformed the S&P 500’s ($SPX) 15.2% gains on a YTD basis, with shares up 5.6% during this period. Similarly, it underperformed the S&P 500 Healthcare Sector SPDR’s (XLV) 9.3% gains over the same time frame.
On May 9, STE shares closed up more than 7% after its Q4 revenue of $1.50 billion beat the consensus estimates of $1.43 billion. The company’s adjusted EPS increased 12.2% year over year to $2.58. For fiscal 2025, the company expects its revenue from continuing operations to grow between 6.5% and 7.5%. Moreover, its adjusted EPS from continuing operations is anticipated to be between $9.05 and $9.25, compared to fiscal 2024 adjusted EPS of $8.20. Meanwhile, STE’s capital expenditures are expected to be $360 million, and free cash flow is expected to be $700 million.
Analysts’ consensus opinion on STE stock is bullish, with a “Moderate Buy” rating overall. Out of seven analysts covering the stock, four advise a “Strong Buy” rating, and three give a “Hold.” The average analyst price target for STE is $243.33, indicating a potential upside of 5% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
