Sotera Health (NASDAQ:SHC) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Sotera Health exceeded quarterly expectations: EPS was $0.29 versus the $0.27 consensus estimate, while revenue reached $324.89 million, above the $319.86 million forecast. Revenue increased 4.4% year over year.
• Analyst sentiment remains generally positive, with eight Buy ratings, two Holds and one Sell; the stock has a consensus “Moderate Buy” rating and a $21.38 target price.
• Insiders sold heavily in recent months: insiders sold 1.29 million shares worth approximately $24 million over the past 90 days, including substantial sales by the chairman and another insider.

Sotera Health (NASDAQ:SHC - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02, FiscalAI reports. Sotera Health had a return on equity of 40.12% and a net margin of 13.44%. The business had revenue of $324.89 million for the quarter, compared to the consensus estimate of $319.86 million. During the same quarter last year, the business posted $0.26 EPS. The business's revenue was up 4.4% on a year-over-year basis.

Sotera Health Stock Performance

Shares of SHC stock opened at $16.62 on Tuesday. Sotera Health has a 12-month low of $13.09 and a 12-month high of $19.85. The company has a debt-to-equity ratio of 3.33, a current ratio of 2.80 and a quick ratio of 2.55. The firm has a market capitalization of $4.74 billion, a price-to-earnings ratio of 29.07 and a beta of 1.85. The business has a 50 day simple moving average of $18.48 and a 200 day simple moving average of $17.03.

Analyst Upgrades and Downgrades

SHC has been the topic of several analyst reports. Wall Street Zen raised Sotera Health from a "buy" rating to a "strong-buy" rating in a research report on Sunday, October 25th. Piper Sandler reissued an "overweight" rating and set a $25.00 price target on shares of Sotera Health in a report on Tuesday, September 8th. Weiss Ratings lowered shares of Sotera Health from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, October 23rd. Barclays increased their price objective on shares of Sotera Health from $19.00 to $22.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. cut shares of Sotera Health from a "neutral" rating to an "underweight" rating and set a $17.00 price objective on the stock. in a report on Wednesday, October 14th. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Sotera Health currently has an average rating of "Moderate Buy" and a consensus target price of $21.38.

Insider Buying and Selling at Sotera Health

In other news, Chairman Michael Petras, Jr. sold 850,000 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $18.50, for a total value of $15,725,000.00. Following the completion of the transaction, the chairman owned 3,969,393 shares of the company's stock, valued at approximately $73,433,770.50. This represents a 17.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Michael Rutz sold 150,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $18.84, for a total value of $2,826,000.00. Following the completion of the transaction, the insider directly owned 334,279 shares of the company's stock, valued at approximately $6,297,816.36. The trade was a 30.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,294,515 shares of company stock worth $23,999,528 in the last ninety days. 15.36% of the stock is owned by company insiders.

Sotera Health Company Profile

Sotera Health Company NASDAQ: SHC is a healthcare services company focused on sterilization, laboratory testing and infection prevention. Its services support manufacturers and providers across the medical device, pharmaceutical, tissue, food safety and other healthcare-related industries.

The company operates through three primary businesses. Sterigenics provides outsourced sterilization services, including ethylene oxide, gamma irradiation and electron-beam processing. Nelson Labs offers laboratory testing, analytical services and consulting for medical devices, pharmaceuticals and other healthcare products.

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