STERIS Q2 Profit Misses Estimates; Organic Revenue Up 3% - Quick Facts

(RTTNews) - STERIS plc (STE) reported second-quarter net income of $40.4 million, or $0.47 per share, compared to $8.7 million, or $0.14 per share in the second quarter of fiscal 2016. Adjusted net income for the second quarter of fiscal 2017 was $76.4 million, or $0.89 per share, compared to $50.1 million or $0.83 per share, prior year. On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.90 for the quarter. Analysts' estimates typically exclude special items.

Second-quarter revenue increased 32% to $646.4 million compared with $489.9 million for STERIS Corporation in the second quarter of fiscal 2016, driven by growth in all four segments. Constant currency organic revenue growth was 3% for the second quarter of fiscal 2017. Analysts expected revenue of $670.24 million for the quarter.

Walt Rosebrough, CEO of STERIS, said: "Although orders and backlog remain strong, our revenue in the second quarter was somewhat softer than anticipated. Operating margins continue to improve in line with our expectations, and we have confidence in our ability to deliver a strong second half."

STERIS's has authorized a quarterly interim dividend of $0.28 per share. The dividend is payable December 21, 2016 to shareholders of record at the close of business on November 23, 2016.

The company maintained its outlook of approximately 6% constant currency organic revenue growth for fiscal 2017. Primarily reflecting divestitures, the company reduced its total revenue growth expectations to approximately 19-20% for fiscal 2017, compared to prior expectations of 22-23% revenue growth. The company maintained its original outlook for adjusted earnings per share in the range of $3.85 - $4.00 for fiscal 2017.