On Jan. 31, infection-control products maker Steris (NYSE:STE) released third-quarter earnings for the period ended Dec. 31.
- Revenues increased by 4%, helped by growth in all three business segments but primarily as a result of a double-digit increase in global service revenues.
- Net income from continuing operations decreased by 9.9% because of added restructuring expenses and 11% increase in the sales, general, and administrative expenses.
- Earnings per share declined by 5.9%, mainly because of a decrease in net profit, but this loss was partially offset by a 5.1% decline in the number of outstanding shares.
- The company expects modest revenue growth of 2%-3% to continue through the 2007 fiscal year. Earnings are expected to be in the range of $1.16 to $1.20 per share.
- Our Motley Fool CAPS community does not have a favorable opinion of Steris; it currently rates only one out of five stars.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$299.0 |
$287.5 |
4.0% |
|
Net Profit |
$20.9 |
$23.2 |
(9.9%) |
|
EPS |
$0.32 |
$0.34 |
(5.9%) |
|
Diluted Shares |
65.3 |
68.8 |
(5.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
42.7% |
42.5% |
0.2 |
|
Operating Margin |
11.3% |
13.6% |
(2.3) |
|
Net Margin |
7.0% |
8.1% |
(1.1) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$39.0 |
$44.7 |
(12.6%) |
|
Accounts Rec. |
$207.0 |
$209.5 |
(1.2%) |
|
Inventory |
$147.0 |
$122.0 |
20.5% |
|
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$61.2 |
$55.8 |
9.7% |
|
Long-Term Debt |
$125.4 |
$104.7 |
19.8% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$41.4 |
$99.4 |
(58.4%) |
|
Capital Expenditures |
$33.1 |
$34.3 |
(3.5%) |
|
Free Cash Flow |
$8.3 |
$65.1 |
(87.2%) |
Find out why Fools always follow the money.
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