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STERIS Q1 Earnings Beat Estimates, Operating Margin Falls
STERIS plc (NYSE: STE) reported first-quarter fiscal 2025 adjusted earnings per share of $2.03, up 10.3% from the year-ago quarter's figure. The figure surpassed the Zacks Consensus Estimate by 2 cents.
The adjustment excludes the impacts of certain non-recurring charges, such as the amortization of acquired intangible assets and acquisition and integration-related charges, among others.
The company's GAAP EPS was $1.41, up 7.6% from the year-ago level of $1.31.
Revenues in Detail
Revenues of $1.28 billion from continuing operations increased 8.5% year over year. The figure outpaced the Zacks Consensus Estimate by 1.5%.
Organic revenues at the constant exchange rate or CER rose 6% year over year.
Quarter in Detail
The company operates through three segments — Healthcare, Applied Sterilization Technologies ("AST"), and Life Sciences.
Revenues at Healthcare rose 10% year over year to $901.2 million (up 5% on a CER organic basis). While there was a 23% improvement in consumable revenues and a 14% increase in service revenues, these were partially offset by a 10% decline in capital equipment revenues. Our model expected Healthcare segment revenues to improve 6.9% in the fiscal first quarter.
Revenues at AST improved 7% to $249.8 million (up 8% on a CER organic basis). This performance reflected 7% growth in service revenues and a 24% increase in capital equipment revenues. Our model anticipated a 6.4% improvement in the segment's revenues in the reported quarter.
Revenues in the Life Sciences segment decreased 2% to $128.5 million (up 4% year over year on a CER organic basis). The decline in revenues was due to the divestiture of the CECS business. This performance reflected 13% growth in consumable revenues, offset by a ...