STERIS (NYSE:STE) Updates FY 2027 Earnings Guidance

STERIS (NYSE:STE) issued an update on its FY 2027 earnings guidance on Wednesday morning. 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 Trading Down 0.7%

NYSE:STE traded down $1.64 during trading hours on Thursday, hitting $231.07. The stock had a trading volume of 1,340,485 shares, compared to its average volume of 803,513. The business’s 50 day moving average is $214.04 and its 200-day moving average is $225.66. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.54 and a current ratio of 2.09. The company has a market cap of $22.52 billion, a price-to-earnings ratio of 29.14 and a beta of 0.91. STERIS has a one year low of $195.14 and a one year high of $269.44.

STERIS (NYSE:STE) last released its quarterly earnings data 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. The business had revenue of $1.49 billion during the quarter, compared to analysts’ expectations of $1.49 billion. STERIS had a net margin of 13.18% and a return on equity of 14.15%. The firm’s quarterly revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.34 EPS. STERIS has set its FY 2027 guidance at 11.000-11.300 EPS. Sell-side analysts anticipate that STERIS will post 11.17 EPS for the current fiscal year.

STERIS Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.69 per share. This is an increase from STERIS’s previous quarterly dividend of $0.63. This represents a $2.76 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, September 4th. STERIS’s payout ratio is 33.74%.

Analyst Ratings Changes

STE has been the subject of several research analyst reports. KeyCorp decreased their price objective on STERIS from $291.00 to $269.00 and set an “overweight” rating for the company in a research report on Wednesday, May 13th. UBS Group initiated coverage on shares of STERIS in a report on Tuesday, July 28th. They set a “buy” rating and a $275.00 target price on the stock. Weiss Ratings lowered shares of STERIS from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, May 27th. Wall Street Zen cut shares of STERIS from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Finally, Piper Sandler reissued an “overweight” rating and set a $270.00 price objective on shares of STERIS in a research report on Thursday, May 21st. Four analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $277.25.

Insider Buying and Selling

In other news, CEO Daniel A. Carestio sold 3,054 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $214.64, for a total transaction of $655,510.56. Following the sale, the chief executive officer owned 65,021 shares in the company, valued at $13,956,107.44. This represents a 4.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Richard C. Breeden sold 1,481 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $209.51, for a total value of $310,284.31. Following the completion of the sale, the director directly owned 38,964 shares of the company’s stock, valued at approximately $8,163,347.64. The trade was a 3.66% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 7,328 shares of company stock worth $1,554,051. 1.12% of the stock is owned by corporate insiders.

Key Stories Impacting STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Fiscal Q1 earnings beat expectations: Adjusted EPS was $2.59, ahead of the $2.49 consensus and up from $2.34 a year ago. Revenue increased 7.3% year over year to approximately $1.49 billion, broadly matching expectations. STERIS fiscal Q1 earnings report
• Positive Sentiment: North Carolina expansion supports long-term growth: STERIS plans to invest $600 million in a formulated-chemistries manufacturing and distribution hub in Sanford, North Carolina. The facility is expected to create approximately 335 jobs and expand production capacity for sterilization and disinfection chemicals serving healthcare and pharmaceutical customers. STERIS to invest $600 million in North Carolina manufacturing hub
• Neutral Sentiment: Full-year outlook was maintained: Fiscal 2027 adjusted EPS guidance is $11.00–$11.30, near the $11.16 analyst consensus, while revenue guidance remains about $6.4 billion. Management also reiterated expected reported revenue growth of 7%–8%.
• Neutral Sentiment: Broad-based operating growth: Healthcare revenue rose 8%, Applied Sterilization Technologies increased 6%, and Life Sciences grew 9%. STERIS was also highlighted among financially solid companies expected to raise dividends, supporting its defensive-investment appeal.
• Negative Sentiment: Revenue performance and cash flow created pressure: Although revenue was essentially in line with consensus, some reports characterized it as a modest miss, contributing to an initial aftermarket pullback. Operating cash flow declined to $367.1 million from $420.0 million a year earlier. STERIS Q1 earnings and revenue report
• Negative Sentiment: Investment costs will weigh on near-term results: Capital-expenditure guidance increased to roughly $450 million, while the restructuring plan tied to the North Carolina center is expected to generate $55 million–$70 million in pretax charges over time. These costs may limit near-term free-cash-flow conversion despite the company’s long-term capacity benefits.

Institutional Trading of STERIS

Large investors have recently added to or reduced their stakes in the company. Transamerica Financial Advisors LLC grew its stake in STERIS by 4,500.0% in the 4th quarter. Transamerica Financial Advisors LLC now owns 644 shares of the medical equipment provider’s stock valued at $163,000 after buying an additional 630 shares during the last quarter. Quarry LP lifted its position in STERIS by 65.2% during the fourth quarter. Quarry LP now owns 598 shares of the medical equipment provider’s stock worth $152,000 after acquiring an additional 236 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of STERIS by 20.3% during the fourth quarter. Smartleaf Asset Management LLC now owns 646 shares of the medical equipment provider’s stock worth $165,000 after acquiring an additional 109 shares during the period. Brown Brothers Harriman & Co. boosted its holdings in shares of STERIS by 51.3% during the third quarter. Brown Brothers Harriman & Co. now owns 528 shares of the medical equipment provider’s stock worth $131,000 after acquiring an additional 179 shares during the period. Finally, Tocqueville Asset Management L.P. acquired a new position in shares of STERIS in the third quarter valued at approximately $205,000. Institutional investors and hedge funds 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.