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Understanding Steris (STE) Reliance on International Revenue

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Have you looked into how Steris (STE - Free Report) performed internationally during the quarter ending June 2025? Considering the widespread global presence of this medical products maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining STE's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter amounted to $1.39 billion, showing rise of 8.7%. We will now explore the breakdown of STE's overseas revenue to assess the impact of its international operations.

A Look into STE's International Revenue Streams

Of the total revenue, $22.5 million came from Ireland during the last fiscal quarter, accounting for 1.6%. This represented a surprise of -5.3% as analysts had expected the region to contribute $23.76 million to the total revenue. In comparison, the region contributed $38.21 million, or 2.6%, and $22.19 million, or 1.7%, to total revenue in the previous and year-ago quarters, respectively.

Other Foreign Revenues generated $342.9 million in revenues for the company in the last quarter, constituting 24.7% of the total. This represented a surprise of -5.17% compared to the $361.61 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other Foreign Revenues accounted for $363.71 million (24.6%), and in the year-ago quarter, it contributed $310.42 million (24.3%) to the total revenue.

International Market Revenue Projections

It is projected by analysts on Wall Street that Steris will post revenues of $1.41 billion for the ongoing fiscal quarter, an increase of 6.2% from the year-ago quarter. The expected contributions from Ireland and Other Foreign Revenues to this revenue are 1.7%, and 28.4%, translating into $24.49 million, and $400.87 million, respectively.

For the full year, a total revenue of $5.83 billion is expected for the company, reflecting an increase of 6.8% from the year before. The revenues from Ireland and Other Foreign Revenues are expected to make up 2.2%, and 26.9% of this total, corresponding to $126.76 million, and $1.57 billion, respectively.

Final Thoughts

Steris' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

Steris currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Reviewing Steris' Recent Stock Price Trends

Over the past month, the stock has seen an increase of 6.5% in its value, whereas the Zacks S&P 500 composite has posted an increase of 2.7%. The Zacks Medical sector, Steris' industry group, has descended 3.3% over the identical span. In the past three months, there's been a decline of 3.5% in the company's stock price, against a rise of 13.2% in the S&P 500 index. The broader sector has declined by 1.8% during this interval.


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