Will Applied Sterilization Growth Help STE Beat Q4 Earnings Estimates?

STERIS plc STE is scheduled to release fourth-quarter fiscal 2025 results on May 14, after market close. In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.32, which matched the Zacks Consensus Estimate. STE beat on earnings in two of the trailing four quarters and met expectations twice, delivering an average surprise of 0.61%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).Q4 Estimates for STEThe Zacks Consensus Estimate for revenues is pegged at $1.48 billion, suggesting an increase of 4.2% from the year-ago reported figure.The Zacks Consensus Estimate for EPS is pegged at $2.58, indicating a year-over-year increase of 7.1%.Estimate Revision Trend Ahead of STE's Q4 EarningsEstimates for earnings have remained constant at $2.58 per share in the past 60 days.Let's take a look at how things might have shaped up for the MedTech major prior to the announcement.HealthcareIn the fiscal fourth quarter, growth across consumables and services was robust, favored by procedure volumes in the United States as well as price and market share gains. We expect this trend to have continued in the fiscal fourth quarter as well. During the fiscal third-quarter earnings call, the tightened FY25 revenue growth guidance was attributed to lower-than-expected healthcare capital equipment revenues. The company, however, maintains confidence in recurring revenue streams and backlog strength. This should get reflected in the fourth-quarter results. In the to-be-reported quarter, within Healthcare capital equipment, order growth is expected to remain robust despite ongoing shipment issues due to customer project delays.Our model projects the segment’s revenues to improve 4.1% from the year-ago reported figure.STERIS plc Price and EPS Surprise STERIS plc price-eps-surprise | STERIS plc QuoteApplied Sterilization Technologies (AST)In the fiscal fourth quarter, Steris is expected to have experienced organic revenue growth within this segment. Also, AST’s performance during the last reported quarter was strong despite a decline in capital equipment shipments. In line with this, global MedTech customers are once again expected to have remained stable in the fourth quarter and the company is expected to have experienced an increase in bioprocessing demand. We expect these trends to have contributed to the to-be-reported quarter’s top line. Per our model, AST segment’s revenues for the quarter are likely to increase 9% year over year.Life SciencesThe segment's fiscal third-quarter reported revenues declined year over year as strong growth in consumables and services was offset by a decline in capital equipment revenue. This trend might have continued in the to-be-reported quarter. However, the segment’s margin is expected to have benefited from favorable mix and pricing in the to-be-reported quarter.Our model projects the segment’s revenues to decline 1.5% year over year.What Our Model Suggests for STEPer 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 on earnings, which is not the case here.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: The company currently carries a Zacks Rank #3.Stocks Worth a LookHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this reporting cycle.Premier PINC has an Earnings ESP of +13.82% and a Zacks Rank #2 at present.PINC’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 20.43%. The Zacks Consensus Estimate for third-quarter fiscal 2025 EPS implies a decline of 43.6% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.HealthEquity HQY has an Earnings ESP of +2.03% and a Zacks Rank #3 at present. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average surprise being 12.78%. The Zacks Consensus Estimate for first-quarter fiscal 2026 EPS implies an improvement of 1.3% from the year-ago reported figure.Progyny PGNY has an Earnings ESP of +2.68% and a Zacks Rank #3 at present. The company is scheduled to release first-quarter results on May 8.PGNY’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 54.91%. The Zacks Consensus Estimate for first-quarter 2025 EPS implies an improvement of 15.4% from the year-ago reported figure.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report STERIS plc (STE): Free Stock Analysis Report Premier, Inc. (PINC): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis Report Progyny, Inc. (PGNY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks