Steris gains on post-Synergy merger outlook

Steris (NYSE:STE) shares are up nearly 8% since the company last week issued its 1st post-merger guidance since its $2 billion merger with the U.K.’s Synergy Health, as investors reacted to a top-line growth forecast of 21% to 22% for fiscal 2016.

Mentor, Ohio-based Steris closed the Synergy merger Nov. 2 in a so-called inversion deal, in which it re-incorporated as a British entity.

Steris also said it expects to post adjusted earnings per share of $3.48 to $3.55 for the year ending March

31, 2016.

“We have put a process and series of teams in place to lead the integration of our two companies,” president & CEO Walt Rosebrough said in prepared remarks. “While still in the early days, our integration efforts are progressing as anticipated, and we are excited about what we can achieve together. Our outlook for this fiscal year reflects solid underlying performance from both businesses, as well as the benefit of a partial year of cost synergies from our combination and recent tax legislation. We have a lot of work to do, but our shared values and cultures, which include a clear passion for our Customers and the patients they ultimately serve, is the underlying foundation to successfully bring our businesses together.”

Steris said it will begin reporting its results along 4 business lines starting with its fiscal 3rd quarter – healthcare products, healthcare specialty services, applied sterilization technologies and life sciences.

STE shares are up 7.6% at $76.61 each since Steris issued the updated guidance Dec. 22.

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