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Steris 8-K Report, Financial Results (Feb 7, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 7, 2024
Period End
February 7, 2024
Security
STE
In the record · 2019–202610-K810-Q228-K64

STE filed 8 annual reports (10-K), 22 quarterly reports (10-Q) and 64 current reports (8-K) between 2019 and 2026.

  1. Change in control8-K · Mar ’19Mar ’19
  2. Leadership change8-K · Aug ’21Aug ’21
  3. Material agreement8-K · Jun ’23Jun ’23
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed February 7, 2024. Cited figures are marked; the original filing is the authoritative source.

STERIS plc (NYSE: STE) reported fiscal 2024 third-quarter results for the quarter ended December 31, 2023.

Revenue as reported rose 15% to $1.40 billiona ($1,395.6 million), and constant currency organic revenue grew 10%. Diluted EPS as reported was $1.42, up from $1.24, while adjusted diluted EPS was $2.22 versus $2.02 a year earlier. Net income attributable to shareholders was $140.7 million for the quarter, compared with $123.8 million in the prior-year quarter.

Growth was led by the Healthcare segment, where revenue rose 19% as reported to $916.2 millionb and operating income reached $223.9 million, helped by higher volume, favorable pricing and the surgical instrumentation assets purchased from BD. Life Sciences revenue increased 21% to $146.6 million, while Applied Sterilization Technologies (AST) grew 6% to $234.9 million and Dental declined 5% to $97.9 million. Corporate operating costs were $81.4 million in the quarter versus $53.9 million a year earlier.

Nine-month free cash flow was $457.0 millionc, compared with $262.8 million in the prior-year period. STERIS raised its fiscal 2024 reported revenue growth outlook to 10-11% from 9-10%, and its constant currency organic revenue growth outlook to 7-8% from 6-7%.

Adjusted diluted EPS guidance was narrowed to $8.60d-$8.70 from $8.60-$8.80, reflecting a shift in operating income mix from AST to Healthcare. Total backlog was $534.4 million, down from $651.0 million a year earlier.

02—Key points

Key Highlights

  1. Third-quarter revenue rose 15% as reported to $1,395.6 million; constant currency organic revenue grew 10%.
  2. Diluted EPS as reported was $1.42 versus $1.24; adjusted diluted EPS was $2.22 versus $2.02.
  3. Healthcare revenue grew 19% to $916.2 million, with consumables up 27%, capital equipment up 17% and service up 13%.
  4. Life Sciences revenue increased 21% to $146.6 million, with capital equipment revenue up 57%.
  5. Fiscal 2024 outlook raised: reported revenue growth now 10-11% (from 9-10%); constant currency organic growth now 7-8% (from 6-7%).
  6. Adjusted EPS outlook narrowed to $8.60-$8.70 from $8.60-$8.80, due to a shift in operating income mix from AST to Healthcare.
  7. Nine-month free cash flow was $457.0 million, up from $262.8 million, with total backlog of $534.4 million versus $651.0 million a year earlier.

03—Questions

Frequently Asked Questions

  1. What drove the revenue increase in the quarter?

    Healthcare was the main driver, with revenue up 19% as reported, reflecting solid U.S. procedure volume growth, easing supply chain constraints and the addition of surgical instrumentation assets purchased from BD. Life Sciences revenue also rose 21%, while AST grew 6% and Dental declined 5%.

  2. Why was the fiscal 2024 outlook changed?

    The company raised its reported revenue growth outlook to 10-11% and its constant currency organic growth outlook to 7-8%, primarily because Healthcare is outperforming. The adjusted EPS range was narrowed to $8.60-$8.70 from $8.60-$8.80, due mainly to a shift in operating income mix from AST to Healthcare.

  3. How did profitability compare with the prior year?

    Income from operations was $216.2 million versus $190.8 million, and net income attributable to shareholders was $140.7 million versus $123.8 million. Adjusted diluted EPS rose to $2.22 from $2.02. Corporate costs increased to $81.4 million from $53.9 million.

  4. How is cash flow trending?

    Net cash provided by operations for the first nine months of fiscal 2024 was $718.5 million, compared with $541.1 million a year earlier. Free cash flow was $457.0 million versus $262.8 million, driven by higher earnings and lower cash used for tax and compensation payments and capital expenditures.

  5. What does the backlog data show?

    Total backlog was $534.4 million at December 31, 2023, down from $651.0 million a year earlier. Healthcare backlog was $449.4 million versus $540.4 million, and Life Sciences backlog was $85.0 million versus $110.6 million.

04—Continue

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