STERIS Announces Financial Results for Fiscal 2024 Third Quarter - Seite 2

Fiscal 2024 third quarter revenue for Applied Sterilization Technologies (AST) increased 6% as reported to $234.9 million compared with $222.0 million in the same period last year. This performance reflected 5% growth in service revenue and 42% growth in capital equipment revenue. Underlying service revenue growth continues to be impacted by Medtech Customer inventory management and the continued reduction in demand from bioprocessing Customers. Constant currency organic revenue in the quarter increased 4%. Segment operating income was $105.2 million in the third quarter of fiscal 2024, compared with operating income of $103.5 million in the same period last year.

Life Sciences third quarter revenue as reported increased 21% to $146.6 million compared with $121.3 million in the third quarter of fiscal 2023. This performance reflected 57% growth in capital equipment revenue, 12% growth in service revenue and 8% improvement in consumable revenue. Constant currency organic revenue increased 20% in the quarter compared with the prior year quarter. Reflecting the improvement in volume and price, operating income increased to $56.7 million in the third quarter of fiscal 2024 compared with $45.2 million in the prior year’s third quarter.  

Dental third quarter revenue as reported declined 5% to $97.9 million compared with $103.6 million in the third quarter of fiscal 2023. Constant currency organic revenue declined 6% in the quarter compared with the prior year quarter. Reflecting lower volume, operating income was $18.3 million in the third quarter of fiscal 2024 compared with $20.3 million in the prior year’s third quarter.  

Cash Flow
Net cash provided by operations for the first nine months of fiscal 2024 was $718.5 million, compared with $541.1 million in the same period during fiscal 2023. Free cash flow (see Non-GAAP Financial Measures) for the first nine months of fiscal 2024 was $457.0 million compared with $262.8 million in the prior year period. The increase in free cash flow during the period was driven by higher earnings and declines in cash used for tax and compensation related payments as well as lower capital expenditures.

Fiscal 2024 Outlook
For fiscal 2024, the Company now expects as reported revenue to increase 10-11%, an increase from previous expectations of 9-10%. Expectations for constant currency organic revenue growth are also increased to 7-8% from prior expectations of 6-7%. The primary driver of the increase in revenue growth is the outperformance of the Healthcare segment. Adjusted earnings per diluted share are anticipated to be in the range of $8.60 to $8.70, compared with prior expectations of $8.60 to $8.80, due primarily to a shift in operating income mix from AST to Healthcare.