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Sotera Health Co (NASDAQ:SHC) shares tumbled to a 52-week low of $10.71, reflecting broader market trends and specific challenges faced by the company. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with analysts setting price targets between $13 and $17. This latest price point marks a significant drop for the healthcare services provider, which has seen its stock price struggle in a volatile market environment. Over the past year, Sotera Health has experienced a decline of 5.18%, underscoring the pressures it faces as it navigates through regulatory hurdles and competitive dynamics within the healthcare industry. The company maintains strong liquidity with a current ratio of 2.75 and achieved nearly 5% revenue growth in the last twelve months. Investors are closely monitoring the company’s performance for signs of a turnaround or further decline as it adapts to the evolving landscape. For deeper insights and additional ProTips on Sotera Health’s valuation and growth prospects, visit InvestingPro.
In other recent news, Sotera Health Co. released its fourth-quarter earnings for 2024, which revealed a slight miss in revenue expectations. The company reported earnings per share (EPS) of $0.21, slightly surpassing the forecast of $0.2023. However, revenue reached $290.2 million, falling short of the anticipated $290.7 million. Despite this minor revenue miss, Sotera Health achieved a 4.9% increase in full-year revenue, totaling $1.1 billion for 2024. The company’s adjusted EBITDA grew by 3.9% to $548.6 million, maintaining approximately 50% in adjusted EBITDA margins.
Looking ahead, Sotera Health forecasts a revenue growth of 4-6% for 2025, with adjusted EBITDA expected to grow by 4.5-6.5%. The company plans capital expenditures between $190-210 million and aims to generate $500-600 million in free cash flow over the next three years. Additionally, CEO Michael Petrus emphasized the company’s ongoing growth, marking 2024 as the nineteenth consecutive year of annual revenue growth. While market volatility in the commercial sector remains a challenge, the company continues to focus on operational efficiency and customer satisfaction.
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