Here’s How STERIS is Placed Ahead of Q1 Earnings

STERIS plc (NYSE: STE) is expected to release first-quarter fiscal 2025 results on Aug 6.

Earnings Surprise History

STE has a strong earnings surprise history. It beat on earnings in three of the trailing four quarters and missed the same once, the average surprise being 2.21%.

In the last reported quarter, the company posted adjusted earnings per share of $2.41, in line with the Zacks Consensus Estimate.

Q1 Estimates

The Zacks Consensus Estimate for STERIS’ first-quarter fiscal 2025 revenues is pegged at $1.26 billion. This suggests a decrease of 1.7% from the year-ago reported figure.

The Zacks Consensus Estimate for EPS of $2.03 indicates a year-over-year rise of 1.5%.

Estimate Revision Trend Ahead of Earnings

Estimates for STERIS’ fiscal first-quarter earnings have remained constant at $2.03 per share in the past 30 days.

Let’s take a look at how things might have shaped up for the MedTech major before the announcement.

Factors at Play

Healthcare

In the fiscal fourth quarter, growth across capital equipment, consumables, and services was robust, favored by positive price and high productivity. This helped the company to offset the macro challenges affecting demand in the other segments. Considering a persistent favorable pricing scenario and stabilizing macroeconomic issues, the Healthcare arm of STERIS is expected to have continued its strong momentum in the fiscal first quarter of 2025 as well.

We assume the Healthcare backlog to have finally normalized during the fiscal first quarter, as the company might have been able to ship at a faster pace than the new orders. STERIS’ focus on getting back to normal lead times must have helped it in meeting customer demand. 

Additionally, in the previous earnings call, the company …

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