Steris PLC (NYSE: STE) stock rose over 5.4% on 6th August, 2019 (as of 10:49 am GMT-4; Source: Google finance) after the company in the first quarter of FY 20 has reported the adjusted net income of $105.0 million, compared with adjusted net income for the previous year’s first quarter of $85.6 million. Net cash provided by operations for the first three months of fiscal 2020 was $109.3 million, compared with $100.8 million in fiscal 2019. Free cash flow for the first three months of fiscal 2020 was $59.6 million compared with $75.8 million in the prior-year period. The decline in free cash flow is due to increased capital spending as expected.
Moreover, for the first quarter of FY 20, the company has reported 9% growth in the revenue to $696.8 million compared with $638.8 million in the first quarter of fiscal 2019, with growth across all segments. Healthcare Products revenue as reported grew 6% in the quarter to $309.8 million compared with $292.0 million in the first quarter of fiscal 2019, driven by 7% growth in capital equipment revenue, 2% growth in service revenue and 8% growth in consumable revenue. Healthcare Products operating income was $73.7 million compared with $61.7 million in last year’s first quarter. The increase in profitability was primarily due to increased revenue and a favorable product mix. Fiscal 2020 first-quarter revenue for Applied Sterilization Technologies increased 11% as reported to $154.3 million compared with $139.5 million in the same period last year. Healthcare Specialty Services as reported revenue grew 11% in the quarter to $135.9 million compared with $122.2 million in the first quarter of fiscal 2019. Healthcare Specialty Services operating income was $16.8 million compared with $13.0 million in last year’s first quarter, benefiting from the additional volume and improved productivity. Life Sciences first quarter revenue as reported grew 14% to $96.8 million compared with $85.0 million in the first quarter of fiscal 2019, driven by 40% growth in capital equipment revenue, 1% growth in service revenue and 9% growth in consumable revenue.
For fiscal 2020, adjusted earnings per diluted share are now anticipated to be in the range of $5.38 – $5.53, compared with $5.28 – $5.43 previously. Operating profit increases due to volume and an anticipated adjusted effective tax rate at the low-end of the previously provided range of 19-20% are the primary drivers of the higher earnings per diluted share range.
Capital spending is anticipated to be approximately $280 million and free cash flow is expected to be approximately $300 million, both unchanged from prior outlook.