Sotera Health (NASDAQ:SHC) Releases FY 2025 Earnings Guidance

Key Points

• Sotera Health has issued FY 2025 earnings per share guidance between 0.750 and 0.820, exceeding the consensus estimate of 0.748.
• The company also provided revenue guidance of $1.2 billion, which is above the consensus estimate of $1.1 billion.
• Analysts have shown mixed sentiment, with Goldman Sachs upgrading Sotera Health to a "buy" rating and setting a price target of $17.00, while others have lowered their targets to $13.00.

Sotera Health (NASDAQ:SHC - Get Free Report) issued an update on its FY 2025 earnings guidance on Friday morning. The company provided earnings per share guidance of 0.750-0.820 for the period, compared to the consensus earnings per share estimate of 0.748. The company issued revenue guidance of $1.2 billion-$1.2 billion, compared to the consensus revenue estimate of $1.1 billion.

Sotera Health Price Performance

SHC stock traded up $2.75 during mid-day trading on Friday, reaching $13.97. 4,336,946 shares of the company traded hands, compared to its average volume of 1,037,193. The company has a debt-to-equity ratio of 5.55, a current ratio of 2.46 and a quick ratio of 2.19. The company has a market capitalization of $3.97 billion, a P/E ratio of 174.65 and a beta of 1.81. Sotera Health has a 52-week low of $9.53 and a 52-week high of $17.08. The company has a fifty day moving average price of $11.63 and a 200-day moving average price of $12.03.

Sotera Health (NASDAQ:SHC - Get Free Report) last posted its earnings results on Friday, August 8th. The company reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.17 by $0.03. The business had revenue of $294.34 million during the quarter, compared to analyst estimates of $275.81 million. Sotera Health had a return on equity of 41.08% and a net margin of 2.24%. The company's quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.19 EPS. As a group, analysts anticipate that Sotera Health will post 0.61 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages have recently commented on SHC. Piper Sandler cut their price objective on Sotera Health from $15.00 to $13.00 and set a "neutral" rating for the company in a report on Wednesday, April 23rd. Barclays restated an "overweight" rating on shares of Sotera Health in a report on Friday. The Goldman Sachs Group raised Sotera Health from a "neutral" rating to a "buy" rating and upped their price target for the stock from $14.00 to $17.00 in a research note on Monday, May 5th. Finally, Wall Street Zen raised Sotera Health from a "hold" rating to a "buy" rating in a research note on Saturday, June 28th. One research analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $16.00.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SHC. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Sotera Health by 14.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 342,934 shares of the company's stock valued at $3,999,000 after purchasing an additional 43,471 shares during the period. Acadian Asset Management LLC lifted its position in Sotera Health by 125.5% during the first quarter. Acadian Asset Management LLC now owns 25,192 shares of the company's stock valued at $293,000 after purchasing an additional 14,018 shares during the period. Empowered Funds LLC lifted its position in Sotera Health by 11.1% during the first quarter. Empowered Funds LLC now owns 28,512 shares of the company's stock valued at $332,000 after purchasing an additional 2,845 shares during the period. Finally, Creative Planning lifted its position in Sotera Health by 15.3% during the second quarter. Creative Planning now owns 20,186 shares of the company's stock valued at $224,000 after purchasing an additional 2,673 shares during the period. Institutional investors own 91.03% of the company's stock.

About Sotera Health

Sotera Health Company engages in the provision of sterilization, lab testing, and advisory services in the United States and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. It provides mission-critical end-to-end sterilization services, including gamma and electron beam irradiation, and ethylene oxide processing, as well as designs, installs, and maintains gamma irradiation systems.