Steris (STE) Q2 FY2023 earnings: revenue $1.1 billion, down 8.9% on the year

Steris plc (STE) reported revenue of $1.1 billion for Q2 FY2023, the quarter ended 30 September 2022, down 8.9% on the same quarter a year earlier. Net income was -$315 million, and diluted earnings per share $-3.15. The figures are the company's own, from the 10-Q it filed with the SEC on 9 November 2022.

Revenue

$1.1 billion

-8.9% on the year · +3.7% on the quarter

Q3 FY2021Q2 FY2023

Operating margin

-28.1%

9.7% a year earlier

Q3 FY2021Q2 FY2023

Net income

-$315 million

Q3 FY2021Q2 FY2023

Diluted EPS

-$3.15

Q3 FY2021Q2 FY2023

this quarterthe same quarter a year earlierHover a bar for its figure.

Income statement (profit and loss)

$ million	Q2 FY2023	Q1 FY2023	Q2 FY2022	On the quarter	On the year
Revenue	1,091	1,052	1,197	+3.7%	-8.9%
Cost of revenue	668	639	n/a	+4.6%
Gross profit	482	474	n/a	+1.8%
Gross margin	44.2%	45.1%	n/a
Research and development	24.9	24.8	n/a	+0.7%
Selling, general and administrative	323	335	n/a	-3.4%
Operating income	-306	158	117
Operating margin	-28.1%	15.1%	9.7%
Interest expense	26.1	22.7	n/a	+15.2%
Pre-tax income	159	146	n/a	+9.1%
Income tax	35.4	26.9	n/a	+31.6%
Effective tax rate	22.2%	18.4%	n/a
Net income	-315	111	69.8
Net margin	-28.9%	10.6%	n/a
Diluted EPS	-$3.15	$1.10	$0.69

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed.

Cash flow

$ million	Q2 FY2023	Q1 FY2023	Q2 FY2022	On the quarter	On the year
Operating cash flow	104	232	n/a	-55.2%
Capital expenditure	82.8	116	n/a	-28.6%
Free cash flow	21.1	116	n/a	-81.8%
Free cash flow margin	1.9%	11.0%	n/a
Cash from investing	-97.9	-109	n/a
Cash from financing	-44.9	-141	n/a
Depreciation and amortisation	134	139	118	-3.6%	+13.4%
Share-based compensation	11.5	9.0	n/a	+28.8%
Buybacks	45.2	24.7	n/a	+83.3%
Dividends paid	47.0	43.0	n/a	+9.2%
Dividend per share	$0.47	$0.43	n/a	+9.3%
Diluted shares, weighted	100m	101m	101m	-0.7%	-0.7%
Shares outstanding at period end	100m	100m	100m	-0.2%	-0.0%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2023	Q1 FY2023	Q2 FY2022	On the quarter	On the year
Shareholders' equity	5,802	6,408	6,536	-9.4%	-11.2%
Non-controlling interest	11.4	11.6	n/a	-1.6%
Debt	3,025	2,997	3,443	+0.9%	-12.2%
Operating lease liabilities	n/a	150	n/a
Other liabilities	1,651	1,621	n/a	+1.9%
Total liabilities and equity	10,490	11,188	n/a	-6.2%
Fixed assets	1,572	1,573	n/a	-0.1%
Goodwill	3,705	4,321	n/a	-14.3%
Intangible assets	3,077	3,193	n/a	-3.6%
Cash and equivalents	258	316	383	-18.4%	-32.7%
Receivables	780	764	n/a	+2.1%
Inventory	645	620	n/a	+4.0%
Other assets	451	400	n/a	+12.8%
Total assets	10,490	11,188	n/a	-6.2%

Questions

What was Steris' revenue in Q2 FY2023?

Steris (STE) reported revenue of $1.1 billion for Q2 FY2023, the quarter ended 30 September 2022, down 8.9% on the same quarter a year earlier.

How much did Steris earn in Q2 FY2023?

Net loss for Q2 FY2023 was $315 million, and the diluted loss per share $3.15.

When did Steris report Q2 FY2023 results?

Steris filed its 10-Q for the quarter ended 30 September 2022 with the SEC on 9 November 2022.

Quarterly results, the last 20 quarters

	Q3 FY2022	Q4 FY2022	Q1 FY2023 †	Q2 FY2023 †	Q3 FY2023 †	Q4 FY2023	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024 †	Q4 FY2024 †	Q1 FY2025 †	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *	Q1 FY2027	Q2 FY2027
Revenue	1,209	1,211	1,052	1,091	1,112	1,281	1,183	1,238	1,298	1,419	1,280	1,329	1,371	1,481	1,391	1,460	1,496	1,588	1,493	1,589
Cost of revenue	671	639	639	668	694	735	654	692	738	836	707	750	760	n/a	763	814	841	891	809	878
Gross profit	538	572	474	482	478	546	529	546	560	583	572	579	610	641	628	646	656	697	684	711
Gross margin	45%	47%	45%	44%	43%	43%	45%	44%	43%	41%	45%	44%	45%	43%	45%	44%	44%	44%	46%	45%
R&D	24.8	26.1	24.8	24.9	25.5	26.4	24.7	26.3	25.3	27.5	25.6	27.0	27.4	27.7	26.4	28.2	29.5	28.8	28.6	31.5
SG&A	311	454	335	323	305	336	307	328	308	309	336	329	335	334	354	350	352	352	370	366
Operating income	203	91.9	158	-306	191	225	198	192	226	220	186	220	245	216	246	266	273	317	286	294
Operating margin	17%	8%	15%	-28%	17%	18%	17%	15%	17%	16%	15%	17%	18%	15%	18%	18%	18%	20%	19%	19%
Interest expense	23.0	21.8	22.7	26.1	28.6	30.6	32.4	36.9	38.9	36.1	30.4	19.7	19.1	17.1	15.9	14.9	14.9	15.0	15.8	11.2
Pre-tax income	182	71.5	146	159	172	203	167	156	190	191	175	195	229	197	232	253	258	304	274	288
Tax rate	22%	27%	18%	22%	24%	10%	22%	22%	22%	20%	20%	22%	24%	26%	23%	24%	25%	28%	27%	26%
Net income	144	52.3	111	-315	124	187	124	115	141	-1.4	145	150	174	146	177	192	193	220	200	214
Net margin	12%	4%	11%	-29%	11%	15%	10%	9%	11%	-0%	11%	11%	13%	10%	13%	13%	13%	14%	13%	13%
Diluted EPS	$1.42	$0.52	$1.10	-$3.15	$1.24	$1.88	$1.25	$1.16	$1.42	-$0.01	$1.46	$1.51	$1.75	$1.48	$1.79	$1.94	$1.96	$2.24	$2.04	$2.19
Operating cash flow	244	172	232	104	206	216	281	146	291	255	304	251	333	261	420	288	298	335	367	289
Capital expenditure	81.1	73.1	116	82.8	91.8	71.4	66.6	83.3	119	91.5	108	102	89.2	70.9	93.6	86.5	98.7	90.2	87.5	76.1
Free cash flow	163	98.7	116	21.1	114	144	215	62.8	172	163	196	149	244	190	326	201	200	245	280	213
Buybacks	2.9	28.1	24.7	45.2	84.0	155	8.7	0.5	2.2	0.3	64.2	46.4	100	0.3	10.6	100	50.1	74.3	116	100
Dividends paid	43.0	43.1	43.0	47.0	46.9	46.6	46.4	51.4	51.4	51.4	51.4	56.2	56.2	56.0	56.2	61.9	61.9	61.8	61.4	67.0
Shares outstanding	100m	100m	100m	100m	99m	99m	99m	99m	99m	99m	99m	99m	98m	98m	98m	98m	98m	98m	98m	97m
Filing	10-Q	10-K	10-K	10-K	10-K	10-K	10-K	10-K	10-K	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2022, filed 9 November 2022: the filing.