Steris (STE) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Steris reported revenue of $1.37 billion for the quarter ended December 2024, a decrease of 1.8% year-over-year, with EPS at $2.32 compared to $2.22 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.38 billion, resulting in a surprise of -0.67%, while EPS met the consensus estimate [1] Financial Performance - Healthcare revenues were $976.04 million, below the average estimate of $983.64 million, reflecting a year-over-year increase of 6.5% [4] - Healthcare Products - Consumables generated $358.23 million, slightly above the estimate of $356.72 million, with an 8.7% year-over-year increase [4] - Healthcare Products - Capital equipment revenues were $254.80 million, below the estimated $285.02 million, showing a decline of 4.5% year-over-year [4] - Healthcare Products - Service revenues reached $363.01 million, exceeding the estimate of $341.91 million, with a year-over-year increase of 13.5% [4] - Life Sciences revenues totaled $136.38 million, below the estimate of $141.59 million, marking a 7% decline year-over-year [4] - Applied Sterilization Technologies (AST) revenues were $258.14 million, slightly above the estimate of $254.63 million, with a year-over-year increase of 9.9% [4] - Life Sciences - Service revenues were $36.64 million, below the estimate of $41.15 million, reflecting a 12% decline year-over-year [4] - Life Sciences - Capital equipment revenues were $31.06 million, exceeding the estimate of $28.74 million, but showing a significant decline of 30.7% year-over-year [4] - Life Sciences - Consumables revenues were $68.68 million, below the estimate of $78.26 million, with a year-over-year increase of 14.3% [4] Operating Income - Operating income for Healthcare was $246.92 million, surpassing the average estimate of $231.39 million [4] - Corporate and Other reported an operating loss of $100.84 million, worse than the average estimate of -$86.36 million [4] - Operating income for Applied Sterilization Technologies (AST) was $115.76 million, slightly above the estimate of $112.21 million [4] Stock Performance - Steris shares have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]