Zacks Research Has Positive Outlook for STERIS Q1 Earnings

Key Points

• Zacks Research has raised its Q1 2027 earnings per share (EPS) estimate for STERIS to $2.87, up from $2.69, indicating positive earnings expectations for the medical equipment provider.
• STERIS recently declared a quarterly dividend increase from $0.57 to $0.63, a boost reflecting a 1.0% dividend yield for stockholders on record by September 4th.
• STERIS's latest earnings report showed $2.34 EPS, exceeding analysts' expectations, with revenues rising to $1.40 billion, marking an 8.8% year-over-year increase.

STERIS plc (NYSE:STE - Free Report) - Analysts at Zacks Research upped their Q1 2027 earnings per share (EPS) estimates for shares of STERIS in a research report issued to clients and investors on Wednesday, August 27th. Zacks Research analyst Team now expects that the medical equipment provider will post earnings per share of $2.87 for the quarter, up from their previous forecast of $2.69. The consensus estimate for STERIS's current full-year earnings is $9.08 per share. Zacks Research also issued estimates for STERIS's Q4 2027 earnings at $3.07 EPS.

STERIS (NYSE:STE - Get Free Report) last issued its earnings results on Wednesday, August 6th. The medical equipment provider reported $2.34 EPS for the quarter, beating analysts' consensus estimates of $2.32 by $0.02. STERIS had a return on equity of 14.17% and a net margin of 11.61%.The business had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the company posted $2.03 EPS. The firm's revenue was up 8.8% compared to the same quarter last year.

Several other research firms have also recently weighed in on STE. Jefferies Financial Group started coverage on shares of STERIS in a report on Thursday, May 29th. They issued a "hold" rating and a $263.00 price target on the stock. Wall Street Zen raised STERIS from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 9th. KeyCorp increased their target price on STERIS from $277.00 to $288.00 and gave the company an "overweight" rating in a research note on Tuesday, July 22nd. Morgan Stanley increased their target price on STERIS from $276.00 to $295.00 and gave the company an "overweight" rating in a research note on Friday, August 8th. Finally, JMP Securities increased their target price on STERIS from $265.00 to $280.00 and gave the company a "market outperform" rating in a research note on Friday, May 16th. Six investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, STERIS presently has an average rating of "Moderate Buy" and a consensus price target of $273.50.

STERIS Stock Performance

Shares of STE opened at $245.26 on Monday. STERIS has a 52 week low of $200.98 and a 52 week high of $252.79. The stock has a 50 day moving average price of $235.98 and a two-hundred day moving average price of $231.51. The firm has a market capitalization of $24.16 billion, a P/E ratio of 37.56 and a beta of 0.95. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.53 and a current ratio of 2.22.

STERIS Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Thursday, September 4th will be paid a $0.63 dividend. This is an increase from STERIS's previous quarterly dividend of $0.57. This represents a $2.52 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, September 4th. STERIS's payout ratio is 34.92%.

Insider Transactions at STERIS

In other news, Director Mohsen Sohi sold 4,110 shares of the firm's stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $241.96, for a total value of $994,455.60. Following the transaction, the director directly owned 22,361 shares of the company's stock, valued at approximately $5,410,467.56. This trade represents a 15.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CAO Karen L. Burton sold 7,900 shares of STERIS stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $241.73, for a total transaction of $1,909,667.00. Following the transaction, the chief accounting officer directly owned 5,994 shares in the company, valued at $1,448,929.62. This trade represents a 56.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 36,335 shares of company stock valued at $8,822,302. Company insiders own 1.07% of the company's stock.

Institutional Investors Weigh In On STERIS

A number of large investors have recently modified their holdings of STE. Allworth Financial LP boosted its holdings in shares of STERIS by 7.3% in the 2nd quarter. Allworth Financial LP now owns 661 shares of the medical equipment provider's stock valued at $159,000 after buying an additional 45 shares in the last quarter. Geneos Wealth Management Inc. boosted its holdings in shares of STERIS by 34.9% in the 2nd quarter. Geneos Wealth Management Inc. now owns 174 shares of the medical equipment provider's stock valued at $42,000 after buying an additional 45 shares in the last quarter. Park Edge Advisors LLC boosted its holdings in shares of STERIS by 1.0% in the 1st quarter. Park Edge Advisors LLC now owns 4,709 shares of the medical equipment provider's stock valued at $1,067,000 after buying an additional 47 shares in the last quarter. Ashton Thomas Private Wealth LLC boosted its holdings in shares of STERIS by 3.5% in the 1st quarter. Ashton Thomas Private Wealth LLC now owns 1,611 shares of the medical equipment provider's stock valued at $365,000 after buying an additional 54 shares in the last quarter. Finally, Blue Trust Inc. boosted its holdings in shares of STERIS by 16.5% in the 1st quarter. Blue Trust Inc. now owns 395 shares of the medical equipment provider's stock valued at $90,000 after buying an additional 56 shares in the last quarter. 94.69% of the stock is owned by hedge funds and other institutional investors.

About STERIS

STERIS plc provides infection prevention products and services worldwide. It operates through four segments: Healthcare, Applied Sterilization Technologies, Life Sciences, and Dental. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking products; endoscopy accessories, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, and connectivity solutions, as well as equipment management services.

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