STERIS (NYSE:STE) Shares Gap Up After Earnings Beat

STERIS plc (NYSE:STE) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $210.09, but opened at $222.99. STERIS shares last traded at $221.41, with a volume of 63,780 shares trading hands.

The medical equipment provider reported $2.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.41 by $0.17. The business had revenue of $1.42 billion for the quarter, compared to analyst estimates of $1.41 billion. STERIS had a return on equity of 13.67% and a net margin of 10.48%. The company’s revenue for the quarter was up 10.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.30 earnings per share.

STERIS Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 26th. Investors of record on Wednesday, June 12th will be paid a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 0.96%. The ex-dividend date of this dividend is Wednesday, June 12th. STERIS’s dividend payout ratio (DPR) is 36.43%.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on STE. TheStreet raised STERIS from a “c+” rating to a “b” rating in a research report on Wednesday, February 7th. JMP Securities reiterated a “market outperform” rating and issued a $265.00 price target on shares of STERIS in a report on Thursday, February 8th. Needham & Company LLC reaffirmed a “hold” rating on shares of STERIS in a research report on Friday, April 12th. StockNews.com lowered STERIS from a “buy” rating to a “hold” rating in a research note on Friday, May 3rd. Finally, KeyCorp initiated coverage on shares of STERIS in a research note on Tuesday, February 6th. They set an “overweight” rating and a $253.00 price objective for the company. Four analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $239.60.

Institutional Trading of STERIS

Several hedge funds have recently bought and sold shares of STE. Vanguard Group Inc. raised its position in shares of STERIS by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 11,864,606 shares of the medical equipment provider’s stock worth $2,608,434,000 after buying an additional 53,526 shares in the last quarter. Massachusetts Financial Services Co. MA grew its holdings in STERIS by 1.3% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 5,811,818 shares of the medical equipment provider’s stock worth $1,277,728,000 after acquiring an additional 77,152 shares during the period. Sustainable Growth Advisers LP raised its position in STERIS by 23.5% in the first quarter. Sustainable Growth Advisers LP now owns 1,485,578 shares of the medical equipment provider’s stock worth $333,988,000 after acquiring an additional 282,387 shares in the last quarter. Northern Trust Corp lifted its holdings in STERIS by 0.5% in the 3rd quarter. Northern Trust Corp now owns 1,218,012 shares of the medical equipment provider’s stock valued at $267,256,000 after acquiring an additional 6,101 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of STERIS by 3.4% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 1,009,157 shares of the medical equipment provider’s stock valued at $226,879,000 after purchasing an additional 32,755 shares in the last quarter. 94.69% of the stock is currently owned by institutional investors.

STERIS Price Performance

The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.49 and a current ratio of 2.43. The company’s 50 day moving average price is $217.16 and its 200-day moving average price is $215.97. The company has a market cap of $21.31 billion, a price-to-earnings ratio of 36.81 and a beta of 0.81.

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.