Latest news with #STE
Yahoo
a day ago
- Business
- Yahoo
STE Q1 Earnings Call: STERIS Outpaces Profit Expectations, Faces Revenue Headwinds and Tariff Uncertainty
Medical equipment and services company Steris (NYSE:STE). missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 4.3% year on year to $1.48 billion. Its non-GAAP EPS of $2.74 per share was 5.4% above analysts' consensus estimates. Is now the time to buy STE? Find out in our full research report (it's free). Revenue: $1.48 billion (4.3% year-on-year growth) Adjusted EPS: $2.74 vs analyst estimates of $2.60 (5.4% beat) Adjusted Operating Income: $367.6 million vs analyst estimates of $353.3 million (24.8% margin, 4.1% beat) Adjusted EPS guidance for the upcoming financial year 2026 is $10.03 at the midpoint, beating analyst estimates by 1.4% Operating Margin: 14.6%, in line with the same quarter last year Constant Currency Revenue rose 5.9% year on year, in line with the same quarter last year Market Capitalization: $23.94 billion STERIS' first quarter results were shaped by steady performance in its core Healthcare and Applied Sterilization Technologies (AST) segments, as management highlighted recurring revenue growth and disciplined cost management. CEO Dan Carestio attributed the quarter's results to strong procedure volumes in the U.S., market share gains, and continued momentum in consumables and services. He also pointed out that capital equipment revenue declined from the previous year's high, but noted robust new order intake that contributed to a comfortable backlog. CFO Mike Tokich emphasized improved gross margins, citing favorable pricing, product mix, and productivity that offset labor inflation. Both executives referenced the benefits from restructuring cost savings and working capital improvements, with free cash flow reaching a new high. They acknowledged the impact of segment-specific challenges, including volatility in bioprocessing and the lumpy nature of capital equipment shipments, while maintaining that STERIS' diversified portfolio helped offset these obstacles. Looking ahead, STERIS' forward guidance is underpinned by management's expectations for balanced revenue growth across all segments, continued margin improvement, and the ability to navigate external pressures such as increased tariffs. CEO Dan Carestio noted, 'Our outlook reflects 6% to 7% revenue growth, with about 200 basis points from pricing, and includes a $30 million tariff headwind.' Management expects to benefit from restructuring savings and lower legal expenses in the coming year, while leveraging STERIS' North American manufacturing footprint to reduce tariff exposure. CFO Mike Tokich described the anticipated tariff impact as 'a net number,' and stated that mitigation efforts will continue throughout the year, with the majority of exposure in Healthcare and some in Life Sciences. The company also flagged ongoing opportunities for M&A and emphasized its readiness to pursue acquisitions if attractive targets arise. However, management cautioned that macroeconomic uncertainty and industry-specific headwinds may influence the pace of recovery in capital equipment and bioprocessing markets. Management attributed the quarter's performance to steady recurring revenue streams, margin discipline, and proactive tariff mitigation, while highlighting segment-specific dynamics and M&A readiness. Healthcare recurring revenue strength: STERIS saw ongoing growth in consumables and service revenues within Healthcare, driven by stable U.S. procedure volumes and market share gains, which helped offset a decline in capital equipment sales compared to the previous year's peak. Capital equipment order rebound: Despite a year-over-year decline in Healthcare capital equipment revenue, management cited a 12% increase in new orders, leading to a robust backlog that is expected to support future growth as hospitals invest in sterile processing and surgical infrastructure. AST segment stability: The Applied Sterilization Technologies (AST) segment delivered 9% constant currency organic revenue growth, with services up 7%. Management noted that medical device customer demand remained stable, but bioprocessing revenue was described as 'lumpy,' reflecting quarter-to-quarter variability. Margin gains from cost actions: Gross and operating margin improvements were attributed to positive pricing, favorable product mix, productivity gains, and restructuring cost savings. CFO Mike Tokich highlighted roughly $20 million in anticipated restructuring savings for the coming year. Tariff exposure and mitigation: Tariff costs of $30 million are factored into guidance, with management underscoring STERIS' North American manufacturing base as a partial shield. The company is actively pursuing supply chain adjustments to further limit tariff impact, particularly in Healthcare and Life Sciences. STERIS' outlook for the year centers on broad-based revenue growth, disciplined margin management, and navigating external headwinds such as tariffs and market uncertainty. Segment-wide growth expectations: Management projects 6%-7% organic revenue growth across all segments, driven by recurring consumables and services, and supported by a strong capital equipment backlog, particularly in Healthcare. There is cautious optimism for Life Sciences given recent order recovery. Margin management amid tariffs: The company expects $30 million in tariff expenses, primarily impacting Healthcare and Life Sciences. STERIS aims to offset these costs through pricing actions, productivity improvements, and supply chain adjustments, while restructuring savings should provide additional margin support. Industry and macroeconomic risks: While management is confident in the company's ability to deliver growth, they flagged ongoing macroeconomic uncertainty and potential delays in customer purchasing decisions, especially in capital equipment and bioprocessing, as risks that could affect the pace of revenue realization. In the coming quarters, the StockStory team will monitor (1) execution on backlog delivery, especially for capital equipment in Healthcare and Life Sciences, (2) the effectiveness of tariff mitigation strategies and any supply chain adjustments, and (3) trends in recurring consumables and services growth amid evolving procedure volumes. Progress on M&A activity and the impact of macroeconomic changes on customer investment decisions will also be important indicators. STERIS currently trades at a forward P/E ratio of 24.4×. Should you double down or take your chips? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
4 days ago
- Automotive
- Business Wire
BMW Motorrad Dealers Top-Ranked in 2025 Powersports Study for Providing Quick and Easy Service Appointments
MONTEREY, Calif.--(BUSINESS WIRE)--BMW Motorrad dealerships ranked highest in the 2025 Pied Piper PSI ® Service Telephone Effectiveness ® (STE ®) Powersports Industry Study, which measured the efficiency and quality of customer attempts to schedule service appointments by telephone. Following BMW were Kubota, Triumph, Polaris Off-Road and Harley-Davidson. 'Well-run service departments focus on building customer loyalty, and the first opportunity to drive that loyalty is a customer's phone call to schedule an appointment.' Share Pied Piper submitted service calls to 1,531 powersports dealerships representing 27 brands, then evaluated the telephone interactions. Each brand's overall STE Score is a combined average of its individual dealer performances. Scores range from 0 to 100 and include over 30 differently weighted measurements tracking the best practices most likely to generate service revenue and customer loyalty. BMW Ranked Highest: Consistency in Challenging Conditions 'BMW has consistently been ranked among the top three performing brands during the three years this annual study has been conducted,' said Cameron O'Hagan, Pied Piper's Vice President of Metrics and Analytics. ' This year they have achieved the top position due to that consistency.' BMW led the 2025 STE study with an average STE score of 50 – the same score BMW achieved in both 2023 and 2024. The following are examples of behaviors which set BMW dealers apart from the industry average when customers call for service: Higher Rate of Setting Appointments – 65% of BMW service calls resulted in an appointment being set, compared to only 52% for the industry overall. More Likely to Ask About Other Issues – BMW customers were asked if they had any other issues or needed any additional service 35% of the time on average, compared to only 22% of the time for the industry overall. More Likely to Ask if Visited Before – On average, BMW dealers asked service customers whether they had visited the dealership before 44% of the time, compared to 28% of the time for the industry overall. Reach Service Advisor Quickly – BMW customers on average reached a service advisor within one minute 84% of the time, compared to 78% of the time for the industry overall. Why Should We Care About a Customer's Service Telephone Experience? ' Well-run service departments focus on building customer loyalty, and the first opportunity to drive that loyalty is a customer's phone call to schedule an appointment,' said O'Hagan. ' Powersports customers who struggle to schedule service vote with their feet by moving to another dealership or independent shop. In extreme cases, due to most powersports purchases being discretionary, if ownership becomes frustrating, many customers will begin to question whether it's worth the effort and may sell the vehicle and become sour with the brand. ' The industry's average STE score improved one point over the past year, reaching an average score of 44, one point higher than 2024 but trailing the 2023 high watermark average score by two points. Performance varied substantially from dealership to dealership, with a minority of dealerships clearly benefiting from their superior processes. 16% of dealerships nationally achieved STE scores over 70, by providing an interaction with their service customers that was speedy, efficient and proactively helpful. In contrast, customers for 11% of the dealerships hung up their phone having completely failed in their attempt to schedule service. The business implications between those two extremes are substantial. Powersport Industry Performance Lacking in Key Areas Customer expectations for scheduling service aren't set by the powersports industry. Nearly all powersports customers also schedule service for their cars and trucks, and over the past few years the auto industry has significantly improved the service scheduling experience for their customers. Fail to Live up to Expectations – Today, half of all auto service appointments for basic needs like oil changes are quickly booked online, and with the help of AI-powered chat, 87% of auto customers who phone to schedule service end their call with an appointment—compared to only 52% of the powersports customers. Too Many 'Just Drop it Off' Demands – 41% of the time powersports customers were told to 'just drop it off' and wait an undetermined amount of time, rather than the dealership committing to a specific date and time. In comparison, this unfavorable behavior occurs only 2% of the time in the auto industry. Rarely Ask About Additional Services – Across the industry, only 22% of customers were asked if they had other issues or needed additional services—significantly lower than the 40% rate seen in the auto industry. Industry's Greatest Opportunities for Improvement ' The cliché is true: sales sells the first; service sells the rest,' said O'Hagan. ' Dealerships that prioritize a superior service experience gain in both sales and service.' Turn 'Just Drop it Off' Into a Positive – 41% of powersports customers are told to 'just drop it off,' where the vehicle will wait—often outside in the elements—for an undetermined number of days, before the dealership will get to it. This demonstrates little concern for a customer's time or expectations. However, this 'drop it off' mentality can be transformed from a frustration into a positive experience by also offering an appointment. For example: ' I can schedule you two weeks from today, or if you prefer, you're welcome to bring it in and we'll try to get to it sooner. ' Framing it this way respects the customer's time and shows that the dealership is organized and responsive—turning a traditionally negative interaction into a loyalty-building moment. Understand What Customers Are Really Experiencing – In the 2025 study there were 14 brands which improved their STE score over the previous year. The brand with the greatest improvement was Kubota, with a six-point gain since last year, moving from a tenth-place ranking in 2024 to second in this year's study. Kubota dealers nearly doubled their rate of setting appointments, occurring 58% of the time in 2025 compared to 31% of the time last year. Kubota dealers also drastically cut the rate of insisting 'just drop it off' from 62% of the time in 2024 to 38% of the time this year. The key to this improvement was showing dealers what their customers actually experienced when calling for service. 2025 Brand Performance Compared Performance varied substantially by brand, as shown by these examples: Why Was This Study Conducted? 'The first service interaction that drives loyalty and service revenue is a customer's initial phone call to schedule an appointment,' said O'Hagan. "Because these phone calls often go unnoticed in daily operations, they're frequently neglected — and without clear visibility, improvement becomes difficult." For more than 15 years, Pied Piper has independently published annual industry studies that rank the omnichannel performance of brands and dealer groups. These studies track how industry performance changes over time and let clients understand how their own performance compares. Pied Piper clients order ongoing Prospect Satisfaction Index ® (PSI ®) measurement and reporting – internet, telephone or in-person – for their dealerships, as tools to improve and maintain omnichannel sales and service effectiveness. Pied Piper clients have found that the key to driving dealership improvement is showing what sales and service customers are really experiencing – which is often a surprise. About Pied Piper Management Company, LLC Monterey, California - based Pied Piper helps brands and national retailer groups improve the omnichannel sales & service performance of their retailers. Pied Piper's PSI process applies data science analytics to determine the omnichannel sales and service best practices most likely to drive unit sales and loyalty. PSI then uses a combination of artificial intelligence, machine learning and human actors to measure and report how effectively retail locations follow those best practices. Other recent Pied Piper PSI industry studies include: Learn more, request a presentation of industry study results, or request PSI measurement and reporting at ------------------------- This press release is provided for editorial use only, and information contained in this release may not be used for advertising or otherwise promoting brands mentioned in this release without specific, written permission from Pied Piper Management Co., LLC.
Yahoo
15-05-2025
- Business
- Yahoo
STE Q4 Earnings Beat, Margins Expand, Stock Up in Aftermarket
STERIS plc STE reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $2.74, up 13.7% from the year-ago quarter's figure. The figure surpassed the Zacks Consensus Estimate by 5.8%. The adjustment excludes the impacts of certain non-recurring charges, such as the amortization of acquired intangible assets and acquisition and integration-related charges. The company's GAAP EPS was $1.48, down 3.9% from the year-ago level of $1.54. Full-year fiscal 2025 adjusted EPS was $9.22, up 12.4% from the year-ago quarter's figure. The bottom line surpassed the Zacks Consensus Estimate by 1.4%. Following the earnings announcement, STE stock rose 1.8% in after-market trading yesterday. Revenues of $1.48 billion from continuing operations increased 4.2% year over year. The figure missed the Zacks Consensus Estimate by 0.1%. Organic revenues at constant exchange rate or CER rose 6% year over year. Full-year fiscal 2025 revenues of $5.46 billion from continuing operations increased 6.2% year over year. The figure matched the Zacks Consensus Estimate. The company operates under three segments — Healthcare, Applied Sterilization Technologies ('AST') and Life Sciences. Revenues at Healthcare rose 5% year over year to $1.10 billion (up 6% on a CER organic basis). While consumable revenues improved 6% and service revenues increased 13%, these were partially offset by a 4% decline in capital equipment revenues. Our model expected Healthcare segment revenues to improve 4.1% in the fiscal fourth quarter. Revenues at AST improved 9% to $273.9 million (up 10% on a CER organic basis). This performance reflected 6% growth in service revenues and an increase in capital equipment revenues. Our model anticipated a 9% improvement in the segment's quarterly revenues. Revenues from the Life Sciences segment decreased 7% to $149.5 million (flat year over year on a CER organic basis). The decline was due to the divestiture of the CECS business. This performance reflected 8% growth in consumable revenues, offset by a 16% decline in capital equipment revenues and a 21% drop in service revenues. Our model projected a year-over-year decline of 1.5% for the segment's revenues. (See the Zacks Earnings Calendar to stay ahead of market-making news). The gross profit in the reported quarter was $641.2 million, up 10% from the prior-year level. The gross margin expanded 224 basis points (bps) year over year to 43.3% despite a 0.3% increase in the cost of revenues. STERIS witnessed an 8% year-over-year rise in selling, general and administrative expenses. The figure amounted to $333.9 million. Research and development expenses rose 0.8% to $27.7 million. Adjusted operating expenses totaled $361.6 million, up 7.4% year over year. The adjusted operating margin expanded 153 bps to 18.9%. STERIS exited fiscal 2025 with cash and cash equivalents of $171.7 million compared with $207 million at the end of fiscal 2024. STERIS plc price-consensus-eps-surprise-chart | STERIS plc Quote Cumulative net cash flow from operating activities at the end of the fiscal fourth quarter was $1.15 billion compared with $973.2 million in the year-ago period. Further, the company has a five-year annualized dividend growth rate of 9.31%. STERIS provided its fiscal 2026 projection. It expects revenues from continuing operations to increase approximately 6-7%. The Zacks Consensus Estimate is pegged at $5.78 billion, implying 5.9% growth from fiscal 2025. Constant currency organic revenues are also expected to improve approximately 6-7%. Adjusted EPS is expected to be in the range of $9.90-$10.15. The Zacks Consensus Estimate for the metric is pegged at $9.94. STERIS ended fourth-quarter fiscal 2025 on a mixed note, wherein earnings beat estimates but revenues missed the same. Barring the Life Sciences segment, all other business segments experienced growth during the quarter. The ongoing growth momentum is driven by solid improvement in global procedure volumes and a diversified customer base. Meanwhile, performance in Life Sciences was dented by the divestiture of the CECS business. The expansion of both margins bodes well for the stock. STE currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation ITGR and Phibro Animal Health PAHC. AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a loss of 13 cents. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today's Zacks #1 Rank stocks here. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite's 10.5%. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 70.9%. Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, which outpaced the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry's 14.3%. The company's earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.8%. Phibro Animal Health, currently carrying a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 63 cents, which surpassed the Zacks Consensus Estimate by 21.1%. Revenues of $347.8 million missed the Zacks Consensus Estimate by 0.7%. PAHC has an estimated long-term earnings growth rate of 26% compared with the industry's 15.8%. The company's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report STERIS plc (STE) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
14-05-2025
- Business
- Yahoo
Steris: Fiscal Q4 Earnings Snapshot
DUBLIN (AP) — DUBLIN (AP) — Steris Corp. (STE) on Wednesday reported fiscal fourth-quarter profit of $145.7 million. The Dublin-based company said it had net income of $1.48 per share. Earnings, adjusted for non-recurring costs and to account for discontinued operations, were $2.74 per share. The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $2.59 per share. The medical products maker posted revenue of $1.48 billion in the period, meeting Street forecasts. Steris expects full-year earnings in the range of $9.90 to $10.15 per share. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on STE at Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
STERIS's (NYSE:STE) Q1 Earnings Results: Revenue In Line With Expectations
Medical equipment and services company Steris (NYSE:STE). met Wall Street's revenue expectations in Q1 CY2025, with sales up 4.3% year on year to $1.48 billion. Its non-GAAP profit of $2.74 per share was 5.4% above analysts' consensus estimates. Is now the time to buy STERIS? Find out in our full research report. Revenue: $1.48 billion vs analyst estimates of $1.47 billion (4.3% year-on-year growth, in line) Adjusted EPS: $2.74 vs analyst estimates of $2.60 (5.4% beat) Adjusted EPS guidance for the upcoming financial year 2026 is $10.03 at the midpoint, beating analyst estimates by 1.4% Operating Margin: 14.6%, in line with the same quarter last year Free Cash Flow Margin: 12.8%, up from 11.5% in the same quarter last year Constant Currency Revenue rose 5.9% year on year, in line with the same quarter last year Market Capitalization: $22.71 billion With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE:STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, STERIS grew its sales at a solid 12.5% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. STERIS's annualized revenue growth of 9.7% over the last two years is below its five-year trend, but we still think the results were respectable. We can better understand the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 7.6% year-on-year growth. Because this number is lower than its normal revenue growth, we can see that foreign exchange rates have boosted STERIS's performance. This quarter, STERIS grew its revenue by 4.3% year on year, and its $1.48 billion of revenue was in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to grow 5.8% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and suggests the market is baking in some success for its newer products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. STERIS has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 12.9%, higher than the broader healthcare sector. Analyzing the trend in its profitability, STERIS's operating margin decreased by 1.8 percentage points over the last five years, but it rose by 9.8 percentage points on a two-year basis. Still, shareholders will want to see STERIS become more profitable in the future. In Q1, STERIS generated an operating profit margin of 14.6%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. STERIS's EPS grew at a remarkable 10.6% compounded annual growth rate over the last five years. However, this performance was lower than its 12.5% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded. We can take a deeper look into STERIS's earnings to better understand the drivers of its performance. As we mentioned earlier, STERIS's operating margin was flat this quarter but declined by 1.8 percentage points over the last five years. Its share count also grew by 15.3%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q1, STERIS reported EPS at $2.74, up from $2.41 in the same quarter last year. This print beat analysts' estimates by 5.4%. Over the next 12 months, Wall Street expects STERIS's full-year EPS of $9.34 to grow 6.9%. It was good to see STERIS narrowly top analysts' full-year EPS guidance expectations this quarter. We were also happy this quarter's EPS outperformed Wall Street's estimates. Overall, this print had some key positives. The stock traded up 3% to $234 immediately after reporting. Indeed, STERIS had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
