Steris beats third-quarter estimates on strong medical procedure demand
07/02/2024 23:33
Feb 7 (Reuters) - Medical equipment maker Steris STE.N
beat third-quarter profit estimates, helped by strength in its
core healthcare business driven by demand for surgical
instruments as more patients catch up on procedures delayed
during the pandemic.
The company, which produces surgical instruments, posted
quarterly revenue of $1.4 billion, ahead of analysts' estimates
of $1.35 billion, according to LSEG data.
"The continued momentum in our Healthcare segment reflects
solid procedure volume growth in the United States and the
easing of supply chain constraints, which allowed us to continue
to reduce backlog levels," said Dan Carestio, Chief Executive
Officer of Steris.
The Dublin, Ireland-based company is the latest to benefit
from easing hospital staffing shortages and a recent surge in
certain surgical procedures, such as joint replacement,
especially among older adults in the United States.
Steris expects its fiscal year 2024 reported revenue to
increase 10% to 11%, from its prior forecast of 9% to 10%.
Revenue from the healthcare segment, under which the company
sells sterilization products to hospitals and other healthcare
providers, grew 19.1% in the reported quarter to $916.2 million
compared with estimates of $853.7 million.
Excluding items, the company reported a profit of $2.22 per
share, compared with analysts' estimates of $2.17 per share.
(Reporting by Puyaan Singh; Editing by Tasim Zahid)
((Puyaan.Singh@thomsonreuters.com;))