Steris (NYSE:STE) posted first-quarter results today that fell short of the consensus forecast on Wall Street and reduced its outlook for the rest of the year, despite swinging to a profit from a loss a year ago.
The infection prevention technology company — headquartered in Dublin, Ireland, and run operationally out of Mentor, Ohio — reported profits of $111.3 million, or $1.11 per share, on sales of $1.16 billion for the three months ended June 30, 2022. Sales increased 19% compared to the same quarter last year, in which the company reported a $21.8 million loss.
Adjusted to exclude one-time items, earnings per share were $1.90, a penny short of Wall Street, where analysts were looking for EPS of $1.91 on sales of $1.22 billion.
“We are pleased with our operational performance in the quarter, which reflected solid constant currency organic revenue growth despite supply chain challenges,” Steris President and CEO Dan Carestio said in a news release. “Demand for our products remains strong, as evidenced by our significant backlog in healthcare capital equipment. Despite several headwinds, we continue to expect another year of record performance.”
Steris said it expects to log adjusted EPS of $8.40 to $8.60 in fiscal 2023, down from prior guidance of $8.55 to $8.75. Steris also decreased its full-year revenue growth outlook from 12% to 9%, “reflecting the net impact of acquisitions and divestitures as well as approximately $100 million in anticipated negative impact of foreign currency fluctuations.”
The company expects constant currency organic revenue growth of 10%, down from its outlook of 11% at the end of last quarter, citing “ongoing supply chain challenges and procedure volumes somewhat lighter than anticipated.”
STE shares and MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — both closed the day up less than 1%. Steris released its financial results after the markets closed, sending STE shares down nearly 5% to $213.43 in after-hours trading.