STERIS (NYSE:STE) Updates FY 2027 Earnings Guidance

STERIS (NYSE:STE) issued an update on its FY 2027 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 11.000-11.300 for the period, compared to the consensus EPS 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.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Piper Sandler restated an “overweight” rating and set a $270.00 price objective on shares of STERIS in a report on Thursday, May 21st. Weiss Ratings lowered shares of STERIS from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 27th. KeyCorp reduced their price target on shares of STERIS from $291.00 to $269.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 13th. Wall Street Zen lowered shares of STERIS from a “buy” rating to a “hold” rating in a report on Saturday. Finally, UBS Group began coverage on shares of STERIS in a research report on Tuesday, July 28th. They issued a “buy” rating and a $275.00 price objective for the company. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $277.25.

STERIS Stock Up 0.1%

Shares of STE traded up $0.30 on Wednesday, hitting $233.15. The company’s stock had a trading volume of 923,106 shares, compared to its average volume of 799,878. The firm’s fifty day moving average price is $213.64 and its 200-day moving average price is $225.91. STERIS has a fifty-two week low of $195.14 and a fifty-two week high of $269.44. The company has a quick ratio of 1.54, a current ratio of 2.09 and a debt-to-equity ratio of 0.25. The firm has a market capitalization of $22.72 billion, a price-to-earnings ratio of 29.40 and a beta of 0.91.

STERIS (NYSE:STE) last announced its quarterly earnings results on Wednesday, August 5th. The medical equipment provider reported $2.59 earnings per share for the quarter, beating analysts’ consensus estimates of $2.49 by $0.10. STERIS had a net margin of 13.18% and a return on equity of 14.15%. STERIS has set its FY 2027 guidance at 11.000-11.300 EPS. On average, equities research analysts expect that STERIS will post 11.17 EPS for the current year.

STERIS Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be given a $0.69 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $2.76 annualized dividend and a yield of 1.2%. This is an increase from STERIS’s previous quarterly dividend of $0.63. STERIS’s payout ratio is presently 31.78%.

Insider Buying and Selling

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

Key Headlines Impacting STERIS

Here are the key news stories impacting STERIS this week:

• Positive Sentiment: Adjusted EPS exceeded expectations. STERIS reported quarterly adjusted earnings of $2.59 per share, topping the $2.49 consensus estimate by $0.10. STERIS earnings press release
• Positive Sentiment: Broad-based revenue growth supports the investment case. Fiscal first-quarter revenue rose 7% year over year to approximately $1.5 billion, with constant-currency organic growth of 6%. Healthcare revenue increased 8%, AST revenue rose 6%, and Life Sciences revenue advanced 9%. STERIS fiscal 2027 first-quarter results
• Positive Sentiment: Fiscal 2027 guidance remains constructive. STERIS reiterated its expectation for 7% to 8% reported revenue growth and adjusted EPS of approximately $11.10 to $11.30, with revenue guidance near $6.4 billion. The outlook was broadly in line with analyst expectations.
• Positive Sentiment: Long-term capacity expansion could strengthen growth. STERIS plans to invest $600 million in a North Carolina formulated-chemistries manufacturing and distribution center serving healthcare and pharmaceutical customers. STERIS North Carolina investment
• Neutral Sentiment: Higher spending and restructuring create execution risks. Capital-expenditure guidance increased to about $450 million, while free-cash-flow guidance was revised to approximately $800 million. The new facility and restructuring plan are expected to generate $55 million to $70 million in pretax charges over time.
• Negative Sentiment: Insider selling may weigh modestly on sentiment. Company insiders recorded five open-market sales and no purchases during the past six months, although these transactions do not necessarily reflect a change in the company’s fundamental outlook.

Hedge Funds Weigh In On STERIS

A number of large investors have recently bought and sold shares of STE. Hilltop Holdings Inc. acquired a new position in STERIS during the fourth quarter worth $218,000. Wedbush Securities Inc. bought a new stake in STERIS during the 4th quarter worth about $213,000. Tocqueville Asset Management L.P. bought a new stake in STERIS during the 3rd quarter worth about $205,000. Aptus Capital Advisors LLC acquired a new position in shares of STERIS during the 4th quarter worth about $200,000. Finally, Smartleaf Asset Management LLC boosted its stake in shares of STERIS by 20.3% during the 4th quarter. Smartleaf Asset Management LLC now owns 646 shares of the medical equipment provider’s stock worth $165,000 after buying an additional 109 shares during the last quarter. Institutional investors and hedge funds own 94.69% of the company’s stock.

About STERIS

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.