The quarterly results for STERIS plc (NYSE:STE) were released last week, making it a good time to revisit its performance. STERIS beat revenue expectations by 3.5%, at US$1.4b. Statutory earnings per share (EPS) came in at US$1.42, some 2.6% short of analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for STERIS

Taking into account the latest results, the consensus forecast from STERIS' eight analysts is for revenues of US$5.84b in 2025. This reflects a credible 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 18% to US$6.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.81b and earnings per share (EPS) of US$6.77 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$240, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on STERIS, with the most bullish analyst valuing it at US$265 and the most bearish at US$215 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that STERIS' revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that STERIS is also expected to grow slower than other industry participants.