STERIS Corp Second Quarter Earnings Sneak Peek

STERIS Corp (NYSE:STE) will unveil its latest earnings on Wednesday, October 31, 2012. STERIS is a provider of infection prevention and surgical products and services, focused mainly on the critical markets of healthcare, pharmaceutical and research.

STERIS Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 50 cents per share, a rise of 8.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 49 cents. Between one and three months ago, the average estimate moved up. It has dropped from 51 cents during the last month. For the year, analysts are projecting profit of $2.18 per share, a rise of 0.9% from last year.

Past Earnings Performance: Last quarter, the company topped expectations by 8 cents, coming in at net income of 53 cents per share versus a mean estimate of profit of 45 cents per share. This followed two straight quarters of missing estimates.

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Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $6.13 (20.4%), from $30 to $36.13. The stock price saw one of its best stretches over the last year between August 1, 2012 and August 8, 2012, when shares rose for six straight days, increasing 14.6% (+$4.39) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 2.9% (-86 cents) over that span.

A Look Back: In the first quarter, profit rose 5.6% to $30.4 million (52 cents a share) from $28.7 million (48 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.7% to $337 million from $318.6 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.2% in revenue from the year-earlier quarter to $350.2 million.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 54.6% in the third quarter of the last fiscal year and 13.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.7% in the second quarter of the last fiscal year, 8.2% in the third quarter of the last fiscal year and 3.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.43 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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

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