Steris Earnings: Revenue Increase Helps Margin, Net Income Climbs

Steris Corporation (NYSE:STE) reported its results for the fourth quarter. STERIS is a provider of infection prevention and surgical products and services, focused mainly on the critical markets of healthcare, pharmaceutical and research.

Investing Insights: What’s the Future of Microsoft’s Stock?

Steris Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Steris Corporation rose to $44.2 million (76 cents per share) vs. $39 million (65 cents per share) in the same quarter a year earlier. This marks a rise of 13.3% from the year-earlier quarter.

Revenue: Rose 3.3% to $390.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Steris Corporation reported adjusted net income of 59 cents per share. By that measure, the company fell short of mean estimate of 60 cents per share. It beat the average revenue estimate of $380.4 million.

Quoting Management: “We are pleased to demonstrate solid top-line growth in every business in fiscal 2012, with the exception of our Healthcare consumables franchise, which continues to be impacted by the decline in S20 sterilant,” said Walt Rosebrough, President and Chief Executive Officer of STERIS. “Our bottom-line performance was hindered by several factors, but ended the year in-line with our expectations. We anticipate that fiscal 2013 will be a turning point for the Company, as we complete the SYSTEM one transition and establish a new foundation from which we intend to grow revenue and earnings in the future.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 2 cents in the third quarter, by 11 cents in the second quarter, and by 2 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 8.2% to $355.2 million in the third quarter. The figure rose 9.7% in the second quarter from the year earlier and climbed 68.6% in the first quarter from the year-ago quarter.

Margins increased in the third quarter after dropping the quarter before. Gross margin grew 0.2 percentage point from the year-earlier quarter to 41.5%. In the second quarter, the figure rose 2.9 percentage points to 38.9% from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 51 cents per share, down from 54 cents ninety days ago. For the fiscal year, the average estimate has moved up from $2.15 a share to $2.16 over the last sixty days.

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

Don’t Miss These Additional Hot Stories:

Why is Warren Buffett Hungry for Acquisitions?>>

These Airlines are Giving Alcoa a Lift>>

Here’s How to Bet on a Baby Boom>>