Steris PLC (NYSE: STE) stock fell 0.32% on May 18th, 2021 (Source: Google finance) after the company missed the topline estimates for the fourth quarter of FY 21. The company has reported adjusted net income for the fourth quarter of fiscal 2021 of $140.3 million compared to the previous year’s fourth quarter of $139.8 million.
In the fourth quarter of fiscal 2021, STERIS has eliminated the use of LIFO for inventory accounting, which had affected the quarterly profit measures for fiscal 2021.The company had reported the adjusted revenue growth of 6 percent to $873.5 million in the fourth quarter of FY 21, missing the analysts’ estimates for revenue of $879.87 million.
Constant currency organic revenue rose 0.3% for the fourth quarter of fiscal 2021 as compared to constant currency organic revenue results in the fourth quarter of fiscal 2020. Net cash provided by operations for fiscal 2021 has increased to $689.6 million, compared to $590.6 million for fiscal 2020. The company has generated free cash flow for fiscal 2021 of $450.9 million compared to $380.2 million in the prior year period.
Moreover, for the fourth quarter Healthcare revenue grew 3% to $561.8 million compared to $546.6 million in the fourth quarter of fiscal 2020. This performance was driven by a 25% increase in consumable revenue, due to the addition of $32.1 million in revenue from Key Surgical, and a 4% reduction in both service and capital equipment revenue. Constant currency organic revenue of the segment fell 4% for the quarter. Healthcare operating income has increased to $122.7 million compared to $120.9 million in last year’s fourth quarter. The increase in profitability was mainly due to the favorable impact from Key Surgical. Fiscal 2021 fourth quarter revenue for Applied Sterilization Technologies has risen by 15% to $187.5 million compared to $163.7 million in the same period last year. Life Sciences fourth quarter revenue has posted growth of 10% to $124.2 million compared with $112.7 million in the fourth quarter of fiscal 2020, driven by 43% growth in capital equipment revenue and 5% growth in service revenue which were partially offset by a 4% decline in consumable revenue.
For fiscal 2022, the company expects the revenue to be approximately $4.5 billion. Constant currency organic revenue growth is expected to be in the range of 8-9% for fiscal 2022.