Steris PLC (NYSE:STE) stock fell 3.47% (As on February 8, 11:15:14 AM UTC-4, Source: Google Finance) after the company 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. 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. This performance reflected 27% growth in consumable revenue, 17% improvement in capital equipment revenue and 13% growth in service revenue. The Life Sciences segment also reported a 21% increase in revenue. This performance reflected 57% growth in capital equipment revenue, 12% growth in service revenue and 8% improvement in consumable revenue. Fiscal 2024 third quarter revenue for Applied Sterilization Technologies (AST) increased 6% as reported to $234.9 million compared with $222.0 million in the same period last year. This performance reflected 5% growth in service revenue and 42% growth in capital equipment revenue. Underlying service revenue growth continues to be impacted by Medtech Customer inventory management and the continued reduction in demand from bioprocessing Customers. However, the Dental segment witnessed a 5% decline. Net cash provided by operations for the first nine months of fiscal 2024 was $718.5 million.  Free cash flow for the first nine months of fiscal 2024 was $457.0 million compared with $262.8 million in the prior year period. The increase in free cash flow during the period was driven by higher earnings and declines in cash used for tax and compensation related payments as well as lower capital expenditures.

STE in the third quarter of FY 24 has reported the adjusted earnings per share of $2.22, beating the analysts’ estimates for the adjusted earnings per share of $2.17, according to LSEG data. The company had reported the adjusted revenue growth of 15 percent to $1.40 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $1.35 billion.

Steris expects its fiscal year 2024 reported revenue to increase 10% to 11%, from its prior forecast of 9% to 10%. For fiscal 2024, the company is expecting adjusted earnings of $8.60 to $8.70, compared with its prior forecast of $8.60 to $8.80. Analysts polled by Capital IQ expect 2024 adjusted earnings of $8.67 and revenue of $5.44 billion.