Steris Plc (STER, Financial) shares were down 4% today, despite the company's second-quarter adjusted EPS for fiscal 2025 rising by 15.1% to $2.14, which was 1.4% above the analyst's Consensus Estimate. This adjusted non-GAAP total also excludes non-recurring items such as the amortization of acquired intangible assets and acquisition and integration-related charges.

The reported GAAP EPS increased by 25.8% year-on-year to $1.51 from $1.20, reflecting the sound fundamentals of the business. However, this positive earnings news only slightly influenced market activity yesterday, with STE stock increasing by just 0.1% in after-hours trading.

Altogether, STE generated $1.33 billion in revenue from continuing operations, marking a 7.3% increase from the previous year's figure, though it was slightly below the Consensus Estimate of $1.34 billion. The revenues, organically adjusted for constant exchange rates, were up 7%.

STERIS operates through three main segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The Healthcare sector saw strong growth, with revenues increasing by 9% year-over-year to $944.2 million, driven by gains in consumables and service sales, though this was partially offset by a slight reduction in capital equipment sales. AST also performed well, exhibiting a 9% increase in revenue to $256.7 million.

Conversely, the Life Sciences sector faced challenges, recording a 4% decline in revenues to $127.9 million, largely due to the divestiture of the CECS business. This was further impacted by declines in both consumable revenues and the capital equipment and service segments.

This presents a mixed financial picture for investors in the medical equipment and services industry, highlighting the complex factors at play.

This article first appeared on GuruFocus.