Steris (NYSE: STE) reported mixed third-quarter results, but it held the line on EPS guidance amid additional foreign currency headwinds.
The provider of sterilization services and other infection prevention tech lost $315.2 million, or $3.15 per share, off $1.20 billion in revenue for the quarter ended Sept. 30, 2022. Steris swung to a loss versus Q3 2021, when it earned $69.8 million, or 69¢ per share. Revenue was up 0.3%.
Adjusted to exclude one-time items, Steris had earnings per share of $1.99. The result was a penny ahead of The Street, where analysts expected EPS of 98¢. However, revenue was slightly down from analysts’ $1.22 billion prediction.
Some supply chain relief for Steris
“We are pleased with our operational performance in the quarter, which reflected solid constant currency organic revenue growth in a challenging environment,” CEO Dan Carestio said in a news release out yesterday evening.
“As anticipated, we saw some relief on the availability of supply chain components during the quarter and were able to begin more rapidly shipping Healthcare capital equipment in September. Our strong backlog, combined with increased visibility on supply chain, continue to lead us to expect a strong second half of capital equipment shipments.”
A host of U.S.-based companies with global operations have taken a hit from a strong U.S. dollar. Run operationally out of Mentor, Ohio, Steris now expects $150 million in currency headwinds this year, up from its previous $100 million projection. As a result, the company now expects 8% revenue growth this year, versus its prior prediction of 9% growth.
Steris said the exchange rate effect on adjusted EPS will now be 15¢, up from its previous 10¢ prediction. However, the company is sticking to its adjusted EPS range of $8.40 to $8.60 for the year, even as it says the high end of the range is less likely.
Investors reacted by sending STE shares up more than 3% to $166.46 apiece in morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 3%.