Steris (STE) Tops Q1 EPS by 2c

Steris (NYSE: STE) reported Q1 EPS of $0.79, $0.02 better than the analyst estimate of $0.77. Revenue for the quarter came in at $638.4 million versus the consensus estimate of $639.04 million.

Outlook
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 change in revenue expectations is primarily driven by 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 diluted share, and is expected to be absorbed in the Company's previously provided range of $3.85 - $4.00.

The Company has based its outlook on nine-month forward rates as of June 30, 2016. The Company continues to expect $15 million in cost synergies as a result of the combination with Synergy and an adjusted effective tax rate of approximately 25% in fiscal 2017. The Company also continues to expect fiscal 2017 free cash flow to be approximately $250 million, which includes the spending of approximately $50 million in additional cash expenses related to the integration of Synergy Health and capital expenditures of approximately $190 million.

For earnings history and earnings-related data on Steris (STE) click here.

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