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Steris beats third-quarter estimates on strong medical procedure demand

(Reuters) - Medical equipment maker Steris 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.

The company, which produces surgical instruments, posted quarterly revenue of $1.4 billion, ahead of analysts' estimates of $1.35 billion, according to LSEG data.

"The continued momentum in our Healthcare segment reflects solid procedure volume growth in the United States and the easing of supply chain constraints, which allowed us to continue to reduce backlog levels," said Dan Carestio, Chief Executive Officer of Steris.

The Dublin, Ireland-based company is the latest to benefit from easing hospital staffing shortages and a recent surge in certain surgical procedures, such as joint replacement, especially among older adults in the United States.

Steris expects its fiscal year 2024 reported revenue to increase 10% to 11%, from its prior forecast of 9% to 10%.

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.

Excluding items, the company reported a profit of $2.22 per share, compared with analysts' estimates of $2.17 per share.

(Reporting by Puyaan Singh; Editing by Tasim Zahid)