STERIS Q1 Profit Tops View; Cuts FY Revenue Growth View; Plans $300 Mln Buyback

(RTTNews) - STERIS plc (STE), a healthcare and life science company, reported Tuesday that its first-quarter net income was $48.4 million, or $0.56 per share, compared with net income of $24.3 million, or $0.40 per share last year.

Adjusted net income for the first quarter was $68.4 million, or $0.79 per share, compared with previous year's $37.1 million or $0.62 per share.

On average, 7 analysts polled by Thomson Reuters expected earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.

First-quarter revenue increased 45% to $638.4 million from $439.9 million last year, driven by growth in all four segments. Constant currency organic revenue growth was 6%. Analysts expected $639.04 million.

Further, STERIS said its Board of Directors has authorized a $0.03 increase in its quarterly interim dividend to $0.28 per share. The dividend is payable September 27 to shareholders of record at the close of business on August 30.

The Board also has authorized the purchase of up to $300 million of the Company's ordinary shares. The Company may enter into share repurchase contracts until August 2, 2021.

Looking ahead, the company now anticipates total revenue growth in the range of 22-23% for fiscal 2017, including approximately 6% organic revenue growth. This compares to prior expectations of 25-26% revenue growth and approximately 7% organic revenue growth.

The revision mainly reflects the sale of the UK linen business, changes in foreign currency exchange rates, and the previously discussed lower IMS growth, partially offset by the acquisition of Medisafe Holdings Ltd. The combined impact of these factors is anticipated to be approximately $0.05 dilutive to adjusted earnings per share, and is expected to be absorbed in the Company's previously provided range of $3.85 - $4.00.

Analysts expect earnings of $3.91 per share on revenues of $2.77 billion.