Steris Earnings Cheat Sheet: Double-Digit Profit and Revenue Growth

Steris Corporation (NASDAQ:STE) reported its results for the fourth quarter. STERIS Corporation 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 Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Steris Corporation rose to $39 million (65 cents/share) vs. $29.8 million (50 cents/share) in the same quarter a year earlier. A rise of 30.7% from the year earlier quarter.

Revenue: Rose 13.7% to $377.8 million YoY.

Actual vs. Wall St. Expectations: STE reported adjusted net income of of 61 cents/share. By that measure, the company fell short of mean estimate of 62 cents/share. Estimates ranged from 56 cents per share to 69 cents per share.

Quoting Management: “Our fiscal 2011 results reinforce the underlying strength of our business as we delivered another solid year,” said Walt Rosebrough, President and Chief Executive Officer of STERIS. “Our expectations for fiscal 2012 include a substantial increase in revenue from SYSTEM 1E capital sales along with more routine growth in the rest of the business. We have committed to several investments and have some cost headwinds that, in combination with the SYSTEM one transition, will impact our profitability, but we plan to improve revenue and earnings next year.”

Key Stats: Gross margin shrunk 1.5 percentage points to 41.3%. The contraction appeared to be driven by rising costs as the figure rose 16.7% from the year earlier quarter while revenue rose 13.7%.

Over the last five quarters, revenue has fallen an average of 4.7% year over year. The biggest drop came in the first quarter, when revenue fell 33.4% from the year earlier quarter.

Competitors to Watch: Stryker Corporation (NYSE:SYK), Cantel Medical Corp. (NYSE:CMN), Medtronic (NYSE:MDT), Johnson & Johnson (NYSE:JNJ), Medical Action Industries (NASDAQ:MDCI), Kinetic Concepts, Inc. (NYSE:KCI), Invacare Corporation (NYSE:IVC), Becton, Dickinson and Co. (NYSE:BDX), Hill-Rom Holdings, Inc. (NYSE:HRC), Patient Safety Tech. Inc (PSTX), Thermo Fisher Scientific Inc. (NYSE:TMO), Intuitive Surgical (NASDAQ:ISRG) and Winner Medical Group, Inc (NASDAQ:WWIN)

Stock Performance: Shares of STE are unchanged from the previous close of $36.33.


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