The 10-second takeaway
For the quarter ended March 31 (Q4), Steris beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins expanded across the board.
Steris tallied revenue of $390.2 million. The six analysts polled by S&P Capital IQ expected to see a top line of $377.5 million on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $377.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.59. The six earnings estimates compiled by S&P Capital IQ anticipated $0.60 per share. GAAP EPS of $0.76 for Q4 were 17% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.1%, 80 basis points better than the prior-year quarter. Operating margin was 18.7%, 330 basis points better than the prior-year quarter. Net margin was 11.3%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $331.8 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $2.30.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 97 members out of 114 rating the stock outperform, and 17 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Steris a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Steris is outperform, with an average price target of $38.33.
Over the decades, small-cap stocks like Steris have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Steris to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.