What happened
The current earnings season brought some harsh weather to shareholders in Steris (NYSE: STE). The healthcare company unveiled its latest set of quarterly figures on Wednesday and was punished for it, as the stock traded down by almost 12% over the trading week, according to data from S&P Global Market Intelligence.
So what
For the third quarter of Steris' fiscal 2023, the company had $1.22 billion in revenue. That was up only marginally from the $1.21 billion in the same quarter of the preceding fiscal year. Adjusted net income slid by 5% to land at a shade over $202 million. That equated to $2.02 per share.
Neither line item reached the average analyst estimate. Prognosticators were modeling for $1.27 billion on the top line, and a notably higher $2.19 per share for adjusted net income.
Steris, which has a strong position in its niche market of sterilization products, said that supply chain issues affected its performance, and would continue to do so for the rest of this fiscal year.
Nevertheless, the company quoted CEO Dan Carestio as saying that "we are encouraged by a modest improvement in procedures and significant capital equipment backlog in both healthcare and life sciences." The healthcare segment is particularly crucial for Steris' business.
Now what
In its earnings release, Steris updated its guidance for the entirety of fiscal 2023. The company believes it will post revenue growth of 6%, down from its previous expectation of 8%. Per-share adjusted earnings, meanwhile, should land at $8 to $8.10.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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