Sotera Health Q4 revenue beats expectations on sterigenics segment's growth

Reuters02-24
<a href="https://laohu8.com/S/SHC">Sotera Health</a> Q4 revenue beats expectations on sterigenics segment's growth

Overview

  • Sterilization solutions provider's Q4 revenue grew 4.6%, beating analyst expectations

  • Adjusted EPS for Q4 increased by $0.05 from the previous year

  • Company forecasts 2026 net revenue growth of 5.0% to 6.5%

Outlook

  • Sotera Health projects 2026 net revenues between $1.233 bln and $1.251 bln

  • Company expects 2026 adjusted EBITDA between $632 mln and $641 mln

  • Sotera Health forecasts 2026 adjusted EPS in the range of $0.93 to $1.01

Result Drivers

  • STERIGENICS PERFORMANCE - Sterigenics achieved strong Q4 revenue growth of 10.6%, driven by favorable pricing and volume/mix, partially offset by inflation

  • NORDION CHALLENGES - Nordion's Q4 revenue decreased 12.3% due to timing of cobalt-60 harvest schedules, impacting volume/mix

  • NELSON LABS GROWTH - Nelson Labs Q4 revenue increased 2.3%, driven by core lab testing services and favorable pricing

Company press release: ID:nGNX7q133T

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$303.44 mln

$299.51 mln (9 Analysts)

Q4 Net Income

$34.85 mln

Q4 Pretax Profit

Miss

$70.50 mln

$96.45 mln (8 Analysts)

Q4 Gross Profit

$165.92 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the healthcare facilities & services peer group is "buy"

  • Wall Street's median 12-month price target for Sotera Health Co is $20.00, about 14.4% above its February 23 closing price of $17.49

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment