Earnings Preview: What to Expect From STERIS' Report

Mentor, Ohio-based STERIS plc (STE) provides infection prevention products and services. Valued at $22.3 billion by market cap, the company offers sterilizers, washers, surgical tables, lights and equipment management systems, and endoscopy accessories. The provider of infection prevention products and services is expected to announce its fiscal second-quarter earnings for 2025 on Tuesday, Nov. 5. 

Ahead of the event, analysts expect STE to report a profit of $2.12 per share on a diluted basis, up 4.4% from $2.03 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect STE to report EPS of $9.06, up 10.5% from $8.20 in fiscal 2024. Its EPS is expected to rise 9.3% year over year to $9.90 in fiscal 2026. 

STE stock has underperformed the S&P 500’s ($SPX) 22.5% gains on a YTD basis, with shares up 2.3% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 11.7% gains over the same time frame.

STE's underperformance is likely due to a decrease in adjusted operating margins, mainly caused by a significant increase in selling, general, and administrative expenses. 

On Aug. 6, STE shares closed up marginally after reporting its Q1 results. Its revenue stood at $1.3 billion, up 8.1% from the year-ago quarter. Its adjusted EPS grew 10.3% year over year to $2.03. For fiscal 2025, the company continues to expect revenue to increase 6.5% to 7.5%, and its adjusted EPS is anticipated to be in the range of $9.05 to $9.25.

Analysts’ consensus opinion on STE stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of seven analysts covering the stock, four advise a “Strong Buy” rating, and three give a “Hold.” STE’s average analyst price target is $250, indicating a potential upside of 11.1% from the current levels.

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.