STERIS Reports Strong Earnings and Sees Institutional Portfolio Moves
STERIS reported second-quarter earnings and revenue that beat analyst forecasts. The results were accompanied by updated fiscal 2027 guidance and shifting institutional investment stakes.
Institutional investors have recently adjusted their stakes in STERIS plc following the release of the company's financial results. In its most recent filing, Villere ST Denis J & Co. LLC lowered its position by 4.1%, shedding 4,061 shares to retain 93,935 shares valued at $19,727,000. Conversely, CenterBook Partners LP raised its investment by 100.9% to 9,325 shares worth $1,958,000, while Sumitomo Mitsui Trust Group Inc. reduced its stake by 3.6% to 200,723 shares worth $42,154,000. Institutional and hedge fund ownership currently represents 94.69% of the medical equipment provider's stock.
The institutional activity comes on the heels of the company's fiscal second-quarter financial disclosure on Wednesday, November 4th. STERIS reported adjusted earnings of $2.94 per share, outperforming the consensus analyst forecast of $2.68 per share and rising from $2.47 per share during the prior year's period. Revenue reached $1.59 billion, expanding 8.8% year over year and topping analyst expectations of $1.56 billion. GuruFocus reported that second-quarter adjusted net income reached $286.8 million.
Performance varied across the business segments during the quarter. Life Sciences organic revenue rose 18% on a constant-currency basis, driven by a 53% surge in capital equipment sales. Healthcare segment organic revenue climbed 7%, supported by 10% gains in both consumables and service lines. The Applied Sterilization Technologies segment delivered 5% constant-currency organic revenue growth. Operating cash flow totaled $656.1 million for the initial six months, with free cash flow standing at $492.5 million.
Looking forward, STERIS updated its full-year guidance for fiscal 2027. The company forecasts reported revenue growth between 7% and 8%, with constant-currency organic revenue growth projected at 6% to 7%. Full-year earnings per share are expected to range from $11.35 to $11.55, which factors in a benefit of approximately $0.18 per share from tariff refunds. The company also repurchased $100 million of shares during the second quarter, leaving $800 million remaining under its current authorization.
STERIS announced a quarterly dividend of $0.69 per share, payable on Thursday, December 17th, to shareholders of record on Tuesday, November 17th. Wall Street analysts maintain a consensus Moderate Buy rating on the stock, with average target price estimates recently tracked between $271.33 and $276.33 according to MarketBeat. KeyCorp raised its target to $284.00 with an Overweight rating, while Piper Sandler targets $275.00 and UBS Group targets $270.00.