Steris Earnings: In-Line Results and Guidance; Shares Fairly Valued

Narrow-moat Steris reported fiscal 2025 third-quarter results that were in line with our expectations. Revenue for the quarter increased to $1.4 billion, or 6% year-over-year organic growth in constant currency. The company refreshed its fiscal 2025 constant-currency organic growth target to 6%, which is at the bottom of the previous range of 6%-7% and is negatively affected by timing delays in healthcare capital equipment. We maintain our $231 fair value estimate and view shares as fairly valued.