NEW YORK (TheStreet) -- Shares of Steris (STE - Get Report) are up by 0.31% to $68.21 in afternoon trading on Friday, after a judge denied the Federal Trade Commission's request to temporarily halt the company's pending $1.9 billion merger with Synergy Health.
U.S. officials wanted to temporarily stop the merger pending an administrative trial in the Commission's in-house court, after it sued the two company's in May over anti-trust concerns.
The FTC believes that a merger of the two medical device sterilization companies will eliminate future competition.
U.S. District Judge Dan Aaron denied the FTC's request for a temporary injunction on the merger proceedings.
U.K. based Synergy shares spiked following the ruling, rising 2,280 pence on the London Stock Exchange.
Ohio-based Steris announced last year that it was purchasing Synergy in a tax inversion deal that will lower its tax burden by moving its base of operations to the U.K.
Separately, TheStreet Ratings team rates STERIS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate STERIS CORP (STE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- STE's revenue growth trails the industry average of 34.3%. Since the same quarter one year prior, revenues slightly increased by 6.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.63, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, STE has a quick ratio of 1.84, which demonstrates the ability of the company to cover short-term liquidity needs.
- STERIS CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STERIS CORP increased its bottom line by earning $2.25 versus $2.17 in the prior year. This year, the market expects an improvement in earnings ($3.26 versus $2.25).
- 46.99% is the gross profit margin for STERIS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 5.52% trails the industry average.
- You can view the full analysis from the report here: STE