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Steris (STE) Down 2.1% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Steris (STE - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Steris due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for STERIS plc before we dive into how investors and analysts have reacted as of late.
STERIS Tops Q1 Earnings Estimates
STERIS plc reported first-quarter fiscal 2027 adjusted earnings of $2.59 per share, up 10.7% year over year. The bottom line beat the Zacks Consensus Estimate by 1.97%, supported by higher volume, pricing, productivity and a favorable business mix.
On a GAAP basis, earnings were $2.04 per share compared with $1.79 per share.
Revenues rose 7.3% to $1.49 billion but missed the consensus mark by 0.83%. Constant-currency organic revenues increased 6.2%, while total backlog advanced 7.7% year over year to $553.9 million.
STERIS Posts Broad Segment Gains
Healthcare revenues increased 7.6% to $1.05 billion. Service revenues grew 9.6%, consumables revenues advanced 9.2% and capital equipment revenues rose 1.4%. Constant-currency organic growth was 6.4%. Healthcare operating income increased 10.5% to $260.2 million. The improvement reflected higher volume, pricing, productivity and favorable mix, partly offset by inflation and increased tariff costs. The segment’s backlog rose 10% to $444 million.
AST revenues rose 5.8% to $297.6 million, driven by 6% service growth despite a 13% decline in capital equipment revenues. Segment operating income increased 4.5% to $142.9 million, as improved pricing was partly offset by higher depreciation and labor costs.
Life Sciences revenues climbed 8.6% to $146.7 million. Capital equipment revenues rose 17%, consumables increased 8% and service revenues grew 2%. Operating income advanced 5.3% to $61.8 million, aided by improved pricing and volume but restrained by inflation and lower productivity.
STE Expands Adjusted Profitability
Gross profit increased to $684.2 million from $628 million in the prior-year quarter. Gross margin expanded 69 basis points (bps) year over year to 45.8%, despite a 6% increase in cost of revenues.
Selling, general and administrative expenses increased 4.5% to $369.7 million, while research and development expenses rose 8.3% to $28.6 million. Total operating expenses increased 4.3% to $398.3 million. Adjusted income from operations advanced 12% to $354.8 million and the adjusted operating margin expanded 99 bps to 23.8%.
STERIS Builds Cash and Financial Flexibility
Cash and cash equivalents increased to $482.3 million as of June 30, 2026, from $439.6 million as of March 31, 2026. Long-term indebtedness declined to $1.65 billion from $1.81 billion.
Cumulative cash flow from operating activities totaled $367.1 million compared with $420 million a year ago. The company also repurchased $115.5 million of ordinary shares and paid $61.4 million in dividends during the quarter.
STE Reaffirms Fiscal 2027 Outlook
STERIS reiterated fiscal 2027 as-reported revenue growth guidance of 7-8%. Constant-currency organic revenue growth is still expected in the range of 6-7%.
Adjusted earnings per share are projected to be between $11.10 and $11.30.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Steris has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Steris has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Steris belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, OPKO Health (OPK - Free Report) , has gained 22% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
OPKO Health reported revenues of $163.5 million in the last reported quarter, representing a year-over-year change of +4.3%. EPS of -$0.01 for the same period compares with -$0.19 a year ago.
For the current quarter, OPKO Health is expected to post a loss of $0.07 per share, indicating a change of -333.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for OPKO Health. Also, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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Steris (STE) Down 2.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Steris (STE - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Steris due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for STERIS plc before we dive into how investors and analysts have reacted as of late.
STERIS Tops Q1 Earnings Estimates
STERIS plc reported first-quarter fiscal 2027 adjusted earnings of $2.59 per share, up 10.7% year over year. The bottom line beat the Zacks Consensus Estimate by 1.97%, supported by higher volume, pricing, productivity and a favorable business mix.
On a GAAP basis, earnings were $2.04 per share compared with $1.79 per share.
Revenues rose 7.3% to $1.49 billion but missed the consensus mark by 0.83%. Constant-currency organic revenues increased 6.2%, while total backlog advanced 7.7% year over year to $553.9 million.
STERIS Posts Broad Segment Gains
Healthcare revenues increased 7.6% to $1.05 billion. Service revenues grew 9.6%, consumables revenues advanced 9.2% and capital equipment revenues rose 1.4%. Constant-currency organic growth was 6.4%. Healthcare operating income increased 10.5% to $260.2 million. The improvement reflected higher volume, pricing, productivity and favorable mix, partly offset by inflation and increased tariff costs. The segment’s backlog rose 10% to $444 million.
AST revenues rose 5.8% to $297.6 million, driven by 6% service growth despite a 13% decline in capital equipment revenues. Segment operating income increased 4.5% to $142.9 million, as improved pricing was partly offset by higher depreciation and labor costs.
Life Sciences revenues climbed 8.6% to $146.7 million. Capital equipment revenues rose 17%, consumables increased 8% and service revenues grew 2%. Operating income advanced 5.3% to $61.8 million, aided by improved pricing and volume but restrained by inflation and lower productivity.
STE Expands Adjusted Profitability
Gross profit increased to $684.2 million from $628 million in the prior-year quarter. Gross margin expanded 69 basis points (bps) year over year to 45.8%, despite a 6% increase in cost of revenues.
Selling, general and administrative expenses increased 4.5% to $369.7 million, while research and development expenses rose 8.3% to $28.6 million. Total operating expenses increased 4.3% to $398.3 million. Adjusted income from operations advanced 12% to $354.8 million and the adjusted operating margin expanded 99 bps to 23.8%.
STERIS Builds Cash and Financial Flexibility
Cash and cash equivalents increased to $482.3 million as of June 30, 2026, from $439.6 million as of March 31, 2026. Long-term indebtedness declined to $1.65 billion from $1.81 billion.
Cumulative cash flow from operating activities totaled $367.1 million compared with $420 million a year ago. The company also repurchased $115.5 million of ordinary shares and paid $61.4 million in dividends during the quarter.
STE Reaffirms Fiscal 2027 Outlook
STERIS reiterated fiscal 2027 as-reported revenue growth guidance of 7-8%. Constant-currency organic revenue growth is still expected in the range of 6-7%.
Adjusted earnings per share are projected to be between $11.10 and $11.30.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, Steris has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Steris has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Steris belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, OPKO Health (OPK - Free Report) , has gained 22% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
OPKO Health reported revenues of $163.5 million in the last reported quarter, representing a year-over-year change of +4.3%. EPS of -$0.01 for the same period compares with -$0.19 a year ago.
For the current quarter, OPKO Health is expected to post a loss of $0.07 per share, indicating a change of -333.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.7% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for OPKO Health. Also, the stock has a VGM Score of D.