Steris Corp. Earnings: Beats Forecasts

Steris Corporation (NYSE:STE) reported net income above Wall Street’s expectations for the second quarter. STERIS is a provider of infection prevention and surgical products and services, focused mainly on the critical markets of healthcare, pharmaceutical and research.

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Steris Corporation Earnings Cheat Sheet

Results: Net income for Steris Corporation rose to $40 million (68 cents per share) vs. $29.6 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 35.3% from the year-earlier quarter.

Revenue: Rose 4% to $356.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Steris Corporation beat the mean analyst estimate of 50 cents per share. It fell short of the average revenue estimate of $380.4 million.

Quoting Management: “We are pleased with the performance of our business for the first half of the fiscal year,” said Walt Rosebrough, President and Chief Executive Officer of STERIS. “During the second quarter, we experienced softening in our international revenue which was offset by demand in the U.S. Excluding the impact from SYSTEM 1E, we had solid organic revenue growth in our Healthcare segment in the U.S., with strength in several new product areas. Our integration of the U.S. Endoscopy acquisition is on schedule and is performing in-line with our expectations.”

Key Stats:

The company has now seen net income rise in four straight quarters. In the first quarter, net income rose 5.6% while the figure climbed 13.3% in the fourth quarter of the last fiscal year and 54.6% in the third quarter of the last fiscal year from the year earlier.

Revenue has increased for four quarters in a row. Revenue increased 5.7% to $337 million in the first quarter. The figure rose 3.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 53 cents versus a mean estimate of net income of 45 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 54 cents a share to 55 cents over the last sixty days. Over the past three months, the average estimate for the fiscal year has climbed from $2.12 per to share to $2.18.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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