Healthcare services company Sotera Health (NASDAQ:) will be reporting results tomorrow before market hours. Here’s what to look for.
Sotera Health Company beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $285.5 million, up 8.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ EPS estimates.
Is Sotera Health Company a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sotera Health Company’s revenue to decline 6.6% year on year to $289.7 million, a reversal from the 23.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sotera Health Company has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Sotera Health Company’s peers in the research tools & consumables segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Bio-Techne delivered year-on-year revenue growth of 9%, beating analysts’ expectations by 4.2%, and Mettler-Toledo reported revenues up 11.8%, topping estimates by 3.6%. Bio-Techne traded up 3.3% following the results while Mettler-Toledo was also up 2.8%.
Read our full analysis of Bio-Techne’s results here and Mettler-Toledo’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the research tools & consumables stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. Sotera Health Company is up 1.7% during the same time and is heading into earnings with an average analyst price target of $16.06 (compared to the current share price of $13.98).
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