Zacks Research Issues Negative Estimate for STERIS Earnings

Key Points

• Zacks Research has reduced its Q3 2027 earnings per share estimate for STERIS from $2.90 to $2.73, indicating a potential downward trend in profitability.
• Despite the negative estimate from Zacks, Morgan Stanley upgraded STERIS to an "overweight" rating, raising the target price from $260.00 to $276.00.
• STERIS recently announced a dividend increase to $0.63 per share, up from $0.57, showcasing the company's commitment to returning value to shareholders.

STERIS plc (NYSE:STE - Free Report) - Equities research analysts at Zacks Research cut their Q3 2027 earnings per share estimates for shares of STERIS in a research note issued on Tuesday, August 5th. Zacks Research analyst R. Department now forecasts that the medical equipment provider will post earnings per share of $2.73 for the quarter, down from their prior forecast of $2.90. The consensus estimate for STERIS's current full-year earnings is $9.08 per share.

Other equities analysts also recently issued research reports about the company. Morgan Stanley upgraded STERIS from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $260.00 to $276.00 in a research report on Tuesday, July 15th. Jefferies Financial Group began coverage on STERIS in a research report on Thursday, May 29th. They issued a "hold" rating and a $263.00 target price on the stock. KeyCorp raised their target price on STERIS from $277.00 to $288.00 and gave the company an "overweight" rating in a research report on Tuesday, July 22nd. JMP Securities raised their target price on STERIS from $265.00 to $280.00 and gave the company a "market outperform" rating in a research report on Friday, May 16th. Finally, Stephens restated an "overweight" rating and issued a $250.00 target price on shares of STERIS in a research report on Thursday, May 15th. Two research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, STERIS presently has a consensus rating of "Moderate Buy" and an average target price of $270.33.

STERIS Trading Down 2.0%

STE stock opened at $223.90 on Wednesday. The business's 50-day moving average is $234.81 and its 200 day moving average is $228.35. STERIS has a 12-month low of $200.98 and a 12-month high of $252.79. The stock has a market cap of $22.03 billion, a price-to-earnings ratio of 36.11 and a beta of 0.92. The company has a current ratio of 1.96, a quick ratio of 1.39 and a debt-to-equity ratio of 0.29.

STERIS (NYSE:STE - Get Free Report) last posted its earnings results on Wednesday, May 14th. The medical equipment provider reported $2.74 EPS for the quarter, beating analysts' consensus estimates of $2.59 by $0.15. STERIS had a return on equity of 14.21% and a net margin of 11.26%. The firm had revenue of $1.48 billion for the quarter, compared to analysts' expectations of $1.47 billion. During the same period last year, the firm earned $2.58 EPS. The company's quarterly revenue was up 5.7% on a year-over-year basis.

Institutional Trading of STERIS

Several institutional investors have recently made changes to their positions in STE. Select Equity Group L.P. raised its position in STERIS by 165.3% in the fourth quarter. Select Equity Group L.P. now owns 2,599,730 shares of the medical equipment provider's stock valued at $534,400,000 after purchasing an additional 1,619,796 shares during the period. Orbis Allan Gray Ltd purchased a new stake in STERIS in the first quarter valued at approximately $349,950,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in STERIS by 55.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,520,479 shares of the medical equipment provider's stock valued at $344,617,000 after purchasing an additional 540,999 shares during the period. Massachusetts Financial Services Co. MA raised its position in STERIS by 9.1% in the first quarter. Massachusetts Financial Services Co. MA now owns 5,439,349 shares of the medical equipment provider's stock valued at $1,232,828,000 after purchasing an additional 452,146 shares during the period. Finally, GAMMA Investing LLC increased its position in shares of STERIS by 35,759.9% during the first quarter. GAMMA Investing LLC now owns 410,237 shares of the medical equipment provider's stock worth $92,980,000 after acquiring an additional 409,093 shares during the period. Hedge funds and other institutional investors own 94.69% of the company's stock.

Insider Activity at STERIS

In other news, SVP Cary L. Majors sold 12,828 shares of STERIS stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $250.08, for a total transaction of $3,208,026.24. Following the sale, the senior vice president owned 11,372 shares of the company's stock, valued at approximately $2,843,909.76. The trade was a 53.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Daniel A. Carestio sold 17,626 shares of STERIS stock in a transaction that occurred on Thursday, June 5th. The shares were sold at an average price of $242.56, for a total transaction of $4,275,362.56. Following the sale, the chief executive officer directly owned 51,385 shares in the company, valued at approximately $12,463,945.60. The trade was a 25.54% decrease in their position. The disclosure for this sale can be found here. Insiders own 1.07% of the company's stock.

STERIS Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Thursday, September 4th will be issued a dividend of $0.63 per share. The ex-dividend date is Thursday, September 4th. This represents a $2.52 annualized dividend and a dividend yield of 1.1%. This is an increase from STERIS's previous quarterly dividend of $0.57. STERIS's payout ratio is presently 36.77%.

STERIS Company Profile

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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