A Glimpse of Sotera Health's Earnings Potential

Sotera Health SHC is preparing to release its quarterly earnings on Tuesday, 2024-11-05. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Sotera Health to report an earnings per share (EPS) of $0.18.

Sotera Health bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

The company's EPS beat by $0.03 in the last quarter, leading to a 3.38% increase in the share price on the following day.

Here's a look at Sotera Health's past performance and the resulting price change:

Stock Performance

Shares of Sotera Health were trading at $15.86 as of November 01. Over the last 52-week period, shares are up 16.56%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Sotera Health

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Sotera Health.

Analysts have given Sotera Health a total of 2 ratings, with the consensus rating being Outperform. The average one-year price target is $17.0, indicating a potential 7.19% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of Stevanato Gr, Azenta and 10x Genomics, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• For Stevanato Gr, analysts project an Buy trajectory, with an average 1-year price target of $28.0, indicating a potential 76.54% upside.
• The consensus among analysts is an Buy trajectory for Azenta, with an average 1-year price target of $59.5, indicating a potential 275.16% upside.
• The consensus among analysts is an Outperform trajectory for 10x Genomics, with an average 1-year price target of $24.75, indicating a potential 56.05% upside.

Insights: Peer Analysis

The peer analysis summary presents essential metrics for Stevanato Gr, Azenta and 10x Genomics, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Sotera Health ranks highest in Revenue Growth among its peers. It also leads in Gross Profit. However, it has the lowest Return on Equity.

Delving into Sotera Health's Background

Sotera Health Co provides sterilization, analytical lab testing, and advisory services to help ensure that medical, pharmaceutical and food products are safe for healthcare practitioners, patients, and consumers. The company operates in three segments: Sterigenics, Nordion, and Nelson Labs. Sterigenics provides outsourced terminal sterilization and irradiation services for medical device, pharmaceutical, food safety, and advanced applications; Nordion provides Co-60 and gamma irradiators, which are the key components to the gamma sterilization process; and Nelson Labs provides outsourced microbiological and analytical chemistry testing for the medical device and pharmaceutical industries. Its geographical segments are the United States, Canada, Europe, and other regions.

Breaking Down Sotera Health's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Sotera Health displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 8.35%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Net Margin: Sotera Health's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.16%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Sotera Health's ROE excels beyond industry benchmarks, reaching 2.05%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Sotera Health's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.29%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 5.55, Sotera Health faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Sotera Health visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.