STERIS (NYSE:STE) Issues FY 2027 Earnings Guidance

STERIS (NYSE:STE) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 11.000-11.300 for the period, compared to the consensus earnings per share estimate of 11.160. The company issued revenue guidance of $6.4 billion-$6.4 billion, compared to the consensus revenue estimate of $6.4 billion.

STERIS Stock Performance

Shares of STE stock traded up $0.30 during mid-day trading on Wednesday, reaching $233.15. The stock had a trading volume of 923,106 shares, compared to its average volume of 799,878. STERIS has a one year low of $195.14 and a one year high of $269.44. The firm has a market cap of $22.72 billion, a PE ratio of 29.40 and a beta of 0.91. The firm’s 50 day simple moving average is $213.64 and its 200 day simple moving average is $225.91. The company has a quick ratio of 1.54, a current ratio of 2.09 and a debt-to-equity ratio of 0.25.

STERIS (NYSE:STE) last issued its earnings results on Wednesday, August 5th. The medical equipment provider reported $2.59 EPS for the quarter, beating analysts’ consensus estimates of $2.49 by $0.10. STERIS had a return on equity of 14.15% and a net margin of 13.18%.STERIS has set its FY 2027 guidance at 11.000-11.300 EPS. On average, analysts forecast that STERIS will post 11.17 EPS for the current year.

STERIS Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.69 dividend. The ex-dividend date is Friday, September 4th. This represents a $2.76 dividend on an annualized basis and a dividend yield of 1.2%. This is a positive change from STERIS’s previous quarterly dividend of $0.63. STERIS’s dividend payout ratio is currently 31.78%.

Analyst Ratings Changes

A number of equities analysts have recently commented on STE shares. Weiss Ratings downgraded shares of STERIS from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 27th. UBS Group began coverage on shares of STERIS in a research report on Tuesday, July 28th. They issued a “buy” rating and a $275.00 price target for the company. Piper Sandler restated an “overweight” rating and set a $270.00 price target on shares of STERIS in a research note on Thursday, May 21st. KeyCorp decreased their price objective on STERIS from $291.00 to $269.00 and set an “overweight” rating on the stock in a report on Wednesday, May 13th. Finally, Wall Street Zen lowered STERIS from a “buy” rating to a “hold” rating in a research note on Saturday. Four investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $277.25.

Insider Activity at STERIS

In other STERIS news, Director Richard C. Breeden sold 1,481 shares of STERIS stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $209.51, for a total value of $310,284.31. Following the completion of the transaction, the director owned 38,964 shares in the company, valued at approximately $8,163,347.64. The trade was a 3.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP John Adam Zangerle sold 1,419 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $209.28, for a total value of $296,968.32. Following the completion of the transaction, the vice president directly owned 35,259 shares in the company, valued at approximately $7,379,003.52. This represents a 3.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 7,328 shares of company stock valued at $1,554,051 in the last three months. Corporate insiders own 1.12% of the company’s stock.

Key STERIS News

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Adjusted EPS exceeded expectations. STERIS reported quarterly adjusted earnings of $2.59 per share, topping the $2.49 consensus estimate by $0.10. STERIS earnings press release
• Positive Sentiment: Broad-based revenue growth supports the investment case. Fiscal first-quarter revenue rose 7% year over year to approximately $1.5 billion, with constant-currency organic growth of 6%. Healthcare revenue increased 8%, AST revenue rose 6%, and Life Sciences revenue advanced 9%. STERIS fiscal 2027 first-quarter results
• Positive Sentiment: Fiscal 2027 guidance remains constructive. STERIS reiterated its expectation for 7% to 8% reported revenue growth and adjusted EPS of approximately $11.10 to $11.30, with revenue guidance near $6.4 billion. The outlook was broadly in line with analyst expectations.
• Positive Sentiment: Long-term capacity expansion could strengthen growth. STERIS plans to invest $600 million in a North Carolina formulated-chemistries manufacturing and distribution center serving healthcare and pharmaceutical customers. STERIS North Carolina investment
• Neutral Sentiment: Higher spending and restructuring create execution risks. Capital-expenditure guidance increased to about $450 million, while free-cash-flow guidance was revised to approximately $800 million. The new facility and restructuring plan are expected to generate $55 million to $70 million in pretax charges over time.
• Negative Sentiment: Insider selling may weigh modestly on sentiment. Company insiders recorded five open-market sales and no purchases during the past six months, although these transactions do not necessarily reflect a change in the company’s fundamental outlook.

Institutional Investors Weigh In On STERIS

Institutional investors and hedge funds have recently made changes to their positions in the company. Geneos Wealth Management Inc. raised its holdings in STERIS by 416.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 129 shares of the medical equipment provider’s stock worth $29,000 after purchasing an additional 104 shares during the last quarter. Kemnay Advisory Services Inc. bought a new stake in shares of STERIS during the fourth quarter worth approximately $34,000. DV Equities LLC bought a new stake in shares of STERIS during the 4th quarter valued at $35,000. Zions Bancorporation National Association UT grew its stake in shares of STERIS by 51.7% during the fourth quarter. Zions Bancorporation National Association UT now owns 273 shares of the medical equipment provider’s stock worth $69,000 after purchasing an additional 93 shares during the period. Finally, Advisory Services Network LLC bought a new stake in STERIS in the third quarter valued at about $68,000. Institutional investors own 94.69% of the company’s stock.

STERIS Company Profile

STERIS Corporation (NYSE: STE) is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.