Zacks Research Weighs in on STERIS's Q3 Earnings (NYSE:STE)

Key Points

• Zacks Research has lowered its Q3 2026 EPS estimate for STERIS to $2.56, down from $2.57, while the full-year earnings consensus stands at $9.08 per share.
• STERIS reported a net margin of 11.61% and a revenue increase of 8.8% year-over-year, with earnings of $2.34 EPS for the last quarter, exceeding expectations.
• The medical equipment provider declared a quarterly dividend of $0.63 per share, reflecting an annualized yield of 1.0% and an increase from the previous quarterly dividend of $0.57.

STERIS plc (NYSE:STE - Free Report) - Analysts at Zacks Research lowered their Q3 2026 earnings per share (EPS) estimates for shares of STERIS in a note issued to investors on Tuesday, October 21st. Zacks Research analyst Team now expects that the medical equipment provider will post earnings of $2.56 per share for the quarter, down from their prior estimate of $2.57. The consensus estimate for STERIS's current full-year earnings is $9.08 per share.

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

STE has been the subject of several other reports. Weiss Ratings reissued a "buy (b)" rating on shares of STERIS in a report on Tuesday, October 14th. Morgan Stanley increased their target price on shares of STERIS from $276.00 to $295.00 and gave the stock an "overweight" rating in a report on Friday, August 8th. KeyCorp increased their target price on shares of STERIS from $277.00 to $288.00 and gave the stock an "overweight" rating in a report on Tuesday, July 22nd. Finally, Wall Street Zen raised shares of STERIS from a "buy" rating to a "strong-buy" rating in a report on Sunday, September 14th. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $273.50.

STERIS Trading Down 0.1%

STERIS stock opened at $241.97 on Wednesday. The firm has a 50 day moving average of $245.06 and a 200 day moving average of $236.67. The firm has a market capitalization of $23.83 billion, a price-to-earnings ratio of 37.06 and a beta of 1.01. STERIS has a 12-month low of $200.98 and a 12-month high of $253.00. The company has a current ratio of 2.22, a quick ratio of 1.53 and a debt-to-equity ratio of 0.27.

STERIS Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 26th. Shareholders of record on Thursday, September 4th were paid a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 1.0%. The ex-dividend date was Thursday, September 4th. This is a positive change from STERIS's previous quarterly dividend of $0.57. STERIS's dividend payout ratio is currently 38.59%.

Insiders Place Their Bets

In other STERIS news, CEO Daniel A. Carestio sold 159 shares of the company's stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $241.82, for a total value of $38,449.38. Following the completion of the transaction, the chief executive officer directly owned 51,096 shares in the company, valued at $12,356,034.72. This represents a 0.31% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CAO Karen L. Burton sold 7,900 shares of the company's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $241.73, for a total value of $1,909,667.00. Following the completion of the transaction, the chief accounting officer owned 5,994 shares of the company's stock, valued at $1,448,929.62. The trade was a 56.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 18,868 shares of company stock worth $4,585,389 over the last ninety days. 1.07% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of STE. Orbis Allan Gray Ltd bought a new position in shares of STERIS during the 1st quarter valued at approximately $349,950,000. Norges Bank bought a new position in shares of STERIS during the 2nd quarter valued at approximately $289,132,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of STERIS by 55.2% during the 1st 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 acquiring an additional 540,999 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its position in shares of STERIS by 9.1% during the 1st 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 acquiring an additional 452,146 shares during the last quarter. Finally, Invesco Ltd. boosted its position in shares of STERIS by 32.2% during the 2nd quarter. Invesco Ltd. now owns 1,220,699 shares of the medical equipment provider's stock valued at $293,236,000 after acquiring an additional 297,076 shares during the last quarter. 94.69% of the stock is currently owned by 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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