STERIS plcSTE is scheduled to release second-quarter fiscal 2027 results on Nov. 4, 2026, after the market closes.
In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.59, which surpassed the Zacks Consensus Estimate by 1.97%. STE's earnings beat estimates in two of the trailing four quarters, broke even once and missed on another occasion, delivering an average surprise of 1.18%.
Q2 Estimates for STE
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.56 billion, implying an increase of 7.1% from the year-ago reported figure.
The consensus mark for EPS is pegged at $2.67, indicating a year-over-year increase of 8.1%. The estimate has remained constant in the past 60 days.
Let's briefly review how the company has performed ahead of the announcement.
Key Factors Shaping STERIS' Q2 Performance
Healthcare
The segment may have sustained its growth momentum, supported by steady underlying demand and continued commercial execution. Services may have continued to outperform, while consumables may have benefited from increased customer consumption, share gains and growth in endoscopy procedures. After shipment timing affected growth in the prior quarter, Healthcare capital equipment revenues may have improved, aided by a higher backlog and solid order trends.
Recent acquisitions are also expected to have favorably boosted STERIS' fiscal second-quarter revenues. In the fourth quarter of fiscal 2026, we vertically integrated its supplier for MEDglas walls, extending its reach beyond the United States. Early in fiscal 2027, the company also acquired a family of gastrointestinal products, broadening its offerings and strengthening its channel. Together, these two acquisitions are expected to generate approximately $45 million in fiscal 2027 revenues. Accordingly, the fiscal second quarter likely reflected some of that revenue contribution.
The Zacks Consensus Estimate for Healthcare revenues imply an improvement of 7.9% from the year-ago reported figure.
STERIS plc Price and EPS Surprise
STERIS plc price-eps-surprise | STERIS plc Quote
Applied Sterilization Technologies ("AST")
STERIS took a cautious approach to its AST outlook for fiscal 2027, citing soft global demand as customers continue to manage down existing inventory and challenging comparisons in the first half. While destocking likely persisted in the fiscal second quarter, easing comparisons may have helped support revenue growth.
The Zacks Consensus Estimate for the segment's revenues calls for an increase of 5.3% year over year.
Life Sciences
In the fiscal second quarter, the segment may have continued to gain from solid demand for capital equipment and consumables, driving its top-line performance. Services likely contributed favorably as well.
The Zacks Consensus Estimate projects 4.1% year-over-year growth in Life Sciences revenues.
In addition, STERIS may have continued to expand margins in the fiscal second quarter, supported by pricing actions, productivity gains, favorable currency and operating cost discipline, despite ongoing inflationary pressures.
What Our Model Suggests About STE Stock
The proven Zacks model does not conclusively predict an earnings beat for STERIS this season. Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates. However, that is not the case here.
STE's Earnings ESP:STERIS has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank of STERIS:The company currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Top MedTech Picks
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:
Phibro Animal HealthPAHC has an Earnings ESP of +2.10% and a Zacks Rank #2 at present. The company is slated to release first-quarter fiscal 2027 results on Nov. 4.
PAHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company's first-quarter EPS indicates an increase of 8.2% from the year-ago quarter's figure.
Becton, Dickinson and CompanyBDX, or BD, has an Earnings ESP of +0.21% and a Zacks Rank #2 at present. The company is set to release fourth-quarter fiscal 2026 results on Nov. 5.
BD's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter's figure.
IDEXX LaboratoriesIDXX has an Earnings ESP of +0.59% and a Zacks Rank #2 at present. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX's earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for third-quarter EPS implies a jump of 9.1% from the year-ago quarter's figure.
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STERIS plc (STE) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
