A medical equipment manufacturer announced Monday its fiscal 2027 earnings projections will surpass Wall Street analyst predictions, driven by robust demand for sterilization services, even though the company fell slightly short of fourth-quarter profit expectations.
The infection-prevention product maker, Steris, projects adjusted earnings per share between $11.10 and $11.30 for fiscal 2027, meeting or exceeding the average analyst estimate of $11.10 compiled by LSEG data. The company also anticipates yearly revenue growth ranging from 7% to 8%.
The Ohio-based company, which provides sterilization equipment and services to hospitals and laboratories, reported fourth-quarter revenue climbed 7% to reach $1.6 billion, surpassing analyst projections of $1.59 billion for the period ending March 31. The revenue increase stemmed from higher medical procedure volumes and an expanded customer portfolio.
Company leadership also announced approval for a new $1 billion stock buyback program.
However, Steris’ fourth-quarter adjusted earnings of $2.83 per share fell just short of Wall Street’s $2.85 per share prediction.
Breaking down quarterly performance by division, the Healthcare segment, which represents the company’s largest revenue source, generated $1.14 billion in sales, marking a 7% increase. The Applied Sterilization Technologies division saw revenue grow 6% to $289.2 million, while Life Sciences revenue jumped 9% to $162.9 million.
