Steris Increases Sales but Misses Estimates on Earnings
Steris (NYS: STE) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Steris beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins expanded across the board.
Steris tallied revenue of $390.2 million. The six analysts polled by S&P Capital IQ expected to see a top line of $377.5 million on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $377.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.59. The six earnings estimates compiled by S&P Capital IQ anticipated $0.60 per share. GAAP EPS of $0.76 for Q4 were 17% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.1%, 80 basis points better than the prior-year quarter. Operating margin was 18.7%, 330 basis points better than the prior-year quarter. Net margin was 11.3%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $331.8 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $2.30.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 97 members out of 114 rating the stock outperform, and 17 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Steris a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steris is outperform, with an average price target of $38.33.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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