Medical appliances company
third quarter profits rose 15% from a year ago.
The Mentor, Ohio0-based company earned $28.1 million, or 41 cents a share, in the third quarter of fiscal 2006, compared with net income of $24.5 million, or 35 cents a share, in the same period last year.
Net income from continuing operations was $23.2 million, or 34 cents a share, compared with $23.6 million, or 34 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 34 cents a share in the latest quarter.
Driven by growth in all three business segments, revenue for the third quarter increased by 5% to $287.5 million. The Wall Street conensus estimate was $298.4 million. Based on current trends, Steris expects revenue growth to be in the range of 5% to 6% for the next quarter.
The company anticipates that earnings will be 16 cents to 18 cents a share for the fourth quarter of fiscal 2006, including a pretax cost of about $30 million, primarily for non-cash expenses. After adjusting for these expenses, earnings will be 43 cents to 45 cents a share. Analysts polled by Thomson First Call had estimated 43 cents a share.
Revenue associated with acquired businesses and strong U.S. sales of its C-Max surgical table helped revenue from the healthcare segment rise 3% to $203.7 million in the quarter. Acquisition of certain assets of the Cosmed Group led to a 25% increase in the third quarter revenues for Isomedix Services to $31.2 million. Life Sciences sales grew 2% to $52.7 million.
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