Earnings Review and Free Research Report: Steris Reported Strong Results with Growth in Net Income and Earnings
Research Desk Line-up: Medtronic Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Steris PLC (NYSE: STE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=STE, following the Company's posting of its financial results on August 08, 2017, for the first quarter fiscal 2018. Even though the Company's revenues declined by 4.7% y-o-y, it reported increase of 20.6% y-o-y in net income and 21.4% in earnings per share (EPS) for first quarter of FY18. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Medical Appliances & Equipment industry. Pro-TD has currently selected Medtronic PLC (NYSE: MDT) for due-diligence and potential coverage as the Company announced on August 22, 2017, its financial results for Q1 FY18 which ended on July 28, 2017. Register for a free membership today, and be among the early birds that get access to our report on Medtronic when we publish it.
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Earnings Reviewed
For the first quarter of FY18, Steris reported total revenues of $607.96 million compared to $638.38 million for the first quarter of FY17; registering a decline of 4.7% y-o-y due to divestitures. The Company clocked gross profits of $256.12 million for Q1 FY18 compared to $240.00 million for the same quarter of the last fiscal year.
Income from operations generated by Steris was $86.26 million in Q1 FY18 versus $73.52 million in Q1 FY17; a growth of 17.3% y-o-y. The Company reported net income was $58.22 million in the first quarter of FY18 compared to $48.71 million in the corresponding quarter of the last fiscal year; a growth of 20.6% y-o-y.
Earnings per diluted share (EPS) announced by Steris for Q1 FY18 was $0.68 versus $0.56 announced in Q1 FY17; a rise of 21.4% y-o-y. In Q1 FY18, the Company declared $0.28 as cash dividends per ordinary share outstanding compared to $0.25 in the same quarter of the last fiscal year.
The adjusted net income for the first quarter of FY18 was $73.2 million, or $0.85 per diluted share, compared to revenues of $68.4 and $0.79 per diluted share in Q1 FY17.
The adjusted diluted EPS and revenues reported by Steris fell short of Wall Street's analysts' estimates of $0.90 per share and $668 million, respectively, for the aforementioned quarter.
Steris' Segment Information
The Healthcare Products segment generated revenues of $289.1 million in Q1 FY18 compared to $282.7 million in the first quarter of FY17; a growth of 2% y-o-y. The segment reported operating income of $42.2 million in Q1 FY18 compared to $36.0 million in the last fiscal year's first quarter; a growth of 17.2% y-o-y, primarily due to the increased volume and improvement in gross margin.
The Healthcare Specialty Services segment reported revenue of $113.4 million in Q1 FY18 compared to $152.0 million in corresponding quarter of the last fiscal year; a reduction of 25.4% y-o-y, impacted by divestitures year-over-year. The segment reported operating income of $6.0 million in Q1 FY18 compared to $2.5 million in the last fiscal year's first quarter; an increase of 140% y-o-y primarily due to improvement within IMS in North America.
The first quarter of FY18 also saw revenue for Applied Sterilization Technologies segment generate revenues of $124.5 million compared to $122.3 million in the same period of the last fiscal year; an increase of 2% y-o-y. The segment's operating income was $41.2 million for Q1 FY18 compared to $40.4 million in the same period of the last fiscal year.
The Life Sciences segment generated revenues of $80.9 million in Q1 FY18 compared to $81.4 million in same period of the last fiscal year; a decline of 1% y-o-y. The segment also generated an operating income of $21.8 million in the first quarter of fiscal 2018 compared with $24.2 million in the prior fiscal year's first quarter; a decline of 9.9% y-o-y.
Cash Matters
Steris generated net cash from operating activities to the tune of $80.65 million in first quarter of FY18 compared to $80.32 million in the corresponding quarter last fiscal. The cash used up by the Company in investing activities was $54.88 million in Q1 FY18 compared to an expense of $35.65 million in same quarter of the last fiscal year. The net cash used in financing activities by Steris was $22.25 million in Q1 FY18 compared to expense of $43.01 million in Q1 FY17.
The cash and cash equivalents remaining with the Company at end of Q1 FY18 was $2894.84 million compared to $242.42 million in Q1 FY17.
Steris also announced a $0.03 increase in its quarterly interim dividend to $0.31 per share payable September 28, 2017, to shareholders of record at the close of business on August 29, 2017.
Outlook
For the rest of the year, Steris upheld its forecast of 4%-5% constant currency organic revenue growth and adjusted net income per diluted share of $3.96 to $4.09.
Stock Performance
Steris' share price finished yesterday's trading session at $85.22, slightly advancing 0.37%. A total volume of 660.36 thousand shares have exchanged hands, which was higher than the 3-month average volume of 523.03 thousand shares. The Company's stock price rallied 10.57% in the last three months, 21.52% in the past six months, and 21.50% in the previous twelve months. Additionally, the stock surged 26.46% since the start of the year. Shares of the Company have a PE ratio of 61.05 and have a dividend yield of 1.46%. The stock currently has a market cap of $7.27 billion.
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