Sotera Health (NASDAQ:SHC) Issues Quarterly Earnings Results

Sotera Health (NASDAQ:SHC - Get Free Report) released its quarterly earnings data on Tuesday, May 5th. The company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates of $0.17 by $0.01, FiscalAI reports. The business had revenue of $280.05 million during the quarter, compared to analyst estimates of $270.78 million. Sotera Health had a return on equity of 39.73% and a net margin of 9.91%.The company's revenue was up 10.0% on a year-over-year basis. During the same quarter last year, the business posted $0.14 EPS. Sotera Health updated its FY 2026 guidance to 0.930-1.010 EPS.

Here are the key takeaways from Sotera Health's conference call:

• Consolidated Q1 results beat expectations with 6.5% constant-currency revenue growth, 6.9% constant-currency Adjusted EBITDA growth, ~20 bps of margin expansion and Adjusted EPS up ~29% year-over-year.
• Nordion outperformed, delivering 25.8% constant-currency revenue growth and >290 bps of margin expansion (56.4% segment margin) driven by harvest timing, mix and pricing.
• Nelson Labs saw revenue decline (3.8% constant-currency) and segment income fall ~15% CC in Q1, though management expects margins to improve to the low‑to‑mid 30s over the year.
• Material legal development — Georgia state courts dismissed all 8 bellwether EO personal-injury cases (subject to appeal), which the company says undermines plaintiffs' general causation theories and supports its defense posture.
• Leadership and balance-sheet items — CEO succession announced (Alton Shader effective May 26; Michael Petras moves to executive chair), management reaffirmed full‑year 2026 guidance, reported ~ $900M liquidity, Q1 net leverage of 3.2x nearing the 2–3x target, and 2026 capex guidance of $175–$225M.

Sotera Health Price Performance

NASDAQ:SHC traded down $0.01 during trading hours on Friday, hitting $15.71. 1,918,442 shares of the stock were exchanged, compared to its average volume of 2,893,966. Sotera Health has a 52-week low of $10.80 and a 52-week high of $19.85. The firm's fifty day moving average price is $14.95 and its 200 day moving average price is $16.40. The company has a current ratio of 2.82, a quick ratio of 2.54 and a debt-to-equity ratio of 3.56. The company has a market cap of $4.48 billion, a P/E ratio of 38.31 and a beta of 1.82.

Analysts Set New Price Targets

Several research analysts recently weighed in on SHC shares. Zacks Research cut Sotera Health from a "strong-buy" rating to a "hold" rating in a research report on Friday, January 30th. Wall Street Zen lowered Sotera Health from a "strong-buy" rating to a "buy" rating in a research report on Saturday, April 11th. Citigroup raised their price objective on shares of Sotera Health from $21.00 to $23.00 and gave the stock a "buy" rating in a research note on Tuesday, February 24th. Piper Sandler reaffirmed an "overweight" rating and set a $22.00 target price (down from $24.00) on shares of Sotera Health in a report on Wednesday, May 6th. Finally, Barclays lowered their price target on shares of Sotera Health from $20.00 to $18.00 and set an "overweight" rating on the stock in a report on Tuesday, April 14th. Seven analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $20.33.

Insider Buying and Selling at Sotera Health

In other news, Director Gtcr Investment Xi Llc sold 12,735,301 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $15.17, for a total value of $193,194,516.17. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 15.36% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Acadian Asset Management LLC grew its holdings in shares of Sotera Health by 125.5% during the first quarter. Acadian Asset Management LLC now owns 25,192 shares of the company's stock worth $293,000 after buying an additional 14,018 shares in the last quarter. Harvest Fund Management Co. Ltd purchased a new position in shares of Sotera Health in the third quarter worth about $257,000. Guggenheim Capital LLC purchased a new position in shares of Sotera Health in the fourth quarter worth about $249,000. Syon Capital LLC acquired a new position in Sotera Health during the fourth quarter worth about $246,000. Finally, Creative Planning boosted its position in Sotera Health by 15.3% during the second quarter. Creative Planning now owns 20,186 shares of the company's stock worth $224,000 after acquiring an additional 2,673 shares during the last quarter. 91.03% of the stock is owned by institutional investors and hedge funds.

About Sotera Health

Sotera Health Inc NASDAQ: SHC is a global provider of sterilization and laboratory testing services that support the medical device, pharmaceutical, life sciences and consumer product industries. Headquartered in Jacksonville, Florida, the company offers a suite of services designed to ensure products meet rigorous safety and regulatory requirements before reaching market.

Sotera Health operates through three primary service platforms. Its Sterigenics division delivers contract sterilization solutions, including ethylene oxide (EtO), gamma irradiation, electron beam and X-ray technologies.