Sotera Health Q2 revenue rises 9.2%, beats estimates
Sotera Health Q2 revenue rises 9.2%, beats estimates
Overview
U.S. sterilization solutions provider's Q2 revenue grew 9.2% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose 30% and beat analyst expectations
Company raised full-year 2026 revenue and adjusted EBITDA growth outlook
Outlook
Sotera Health raises full-year 2026 net revenues outlook to $1.236 bln-$1.254 bln
Company lifts full-year 2026 Adjusted EBITDA guidance to $634 mln-$643 mln
Sotera Health expects 2026 Adjusted EPS of $0.95-$1.01
Result Drivers
FAVORABLE PRICING AND VOLUME/MIX - Co said Sterigenics Q2 revenue growth was driven by favorable pricing, improved volume/mix and foreign currency benefit, partially offset by inflation
COBALT-60 HARVEST TIMING - Nordion Q2 revenue growth was driven by improved volume/mix, primarily due to timing of Cobalt-60 harvests, and favorable pricing, partially offset by foreign currency
HIGHER COSTS IMPACT - Nelson Labs Q2 segment income margin was impacted by higher costs despite revenue growth from favorable pricing, improved volume/mix and foreign currency benefit
Company press release: ID:nGNX3PVC2q
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $321.38 mln | $309.39 mln (10 Analysts) |
Q2 Adjusted EPS | Beat | $0.26 | $0.24 (10 Analysts) |
Q2 Net Income |
| $53.64 mln |
|
Q2 Pretax Profit | Miss | $78.05 mln | $97.32 mln (7 Analysts) |
Q2 Gross Profit |
| $177.96 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 Company is $21.00, about 16.8% above its August 5 closing price of $17.98
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago
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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.)