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With a market cap of $20.9 billion, STERIS plc (STE) provides infection prevention products and services worldwide. Founded in 1985, the Mentor, Ohio-based company operates through three segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. STE is set to report its Q4 earnings on Wednesday, May 14, after the market closes.
Ahead of the event, analysts expect STE to report an EPS of $2.58 per share, up 7.1% from a profit of $2.41 per share reported in the year-ago quarter. It has exceeded or met analysts' earnings estimates in all of the past four quarters. Its EPS of $2.32 in the recent quarter successfully met the analyst estimates.
For fiscal 2025, analysts expect STE to report an EPS of $9.09, up 10.9% from $8.20 in fiscal 2024. Moreover, in fiscal 2026, its EPS is expected to grow 9.2% year over year to $9.93.
Over the past year, STE shares have surged 11.6%, outperforming the S&P 500 Index’s ($SPX) 9.4% gains and the Health Care Select Sector SPDR Fund’s (XLV) 1.3% decline over the same time frame.
Shares of STE surged marginally following the release of its Q3 earnings on Feb. 5. The company reported a 1.4% year-over-year increase in its revenue, which came in at $1.4 billion. Additionally, its gross margin expanded by 138 basis points to 44.5%. Furthermore, robust operating cash flow of $887.3 million and a full-year EPS guidance range of $9.05 to $9.15 also boosted investor confidence.
Moreover, analysts remain moderately bullish about STE stock’s future prospects, with a "Moderate Buy" rating overall. Among 6 analysts covering the stock, four recommend a “Strong Buy” and two recommend a “Hold.” STE’s mean price of $258 implies a premium of 14.7% from its prevailing price level.
