Steris Earnings: Here’s Why Investors are Not Happy Now

Steris Corp. (NYSE:STE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.21%.

Steris Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 16.98% to $0.44 in the quarter versus EPS of $0.53 in the year-earlier quarter.

Revenue: Rose 9.12% to $367.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Steris Corp. reported adjusted EPS income of $0.44 per share. By that measure, the company missed the mean analyst estimate of $0.56. It missed the average revenue estimate of $372.69 million.

Quoting Management: “We continue to see stable market trends, good performance from the businesses we recently acquired, and strong Healthcare orders and backlog, which gives us confidence in our ability to deliver revenue and earnings in-line with our guidance for the year,” said Walt Rosebrough, President and Chief Executive Officer of STERIS. “We experienced a decline in profitability in the first quarter due to a number of factors, most of which we anticipate will abate in the coming quarters. As a result, we expect a strong second half of the year as the investments we are making begin to pay off, and revenue growth continues.”

Key Stats (on next page)…

Revenue decreased 14.13% from $428.22 million in the previous quarter. EPS decreased 31.25% from $0.64 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.56 and has not changed. For the current year, the average estimate has moved up from a profit of $2.54 to a profit of $2.55 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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