Sotera Health Company's (SHC) stock plummeted by 5.06% in pre-market trading on Thursday, following the release of its fourth-quarter 2024 financial results. The healthcare company reported mixed results for the quarter, with earnings per share beating analyst estimates by a narrow margin but revenue falling short of expectations.
The company reported adjusted earnings of $0.21 per share, surpassing the consensus estimate of $0.20 by 5%. However, revenue for the quarter declined by 6.5% year-over-year to $290.2 million, missing the analyst consensus of $290.88 million. Furthermore, Sotera Health's guidance for 2025 adjusted earnings per share of $0.70 to $0.76 fell short of analyst expectations of $0.78.
The disappointing revenue performance and weaker-than-expected outlook for 2025 appear to have dampened investor sentiment, leading to the significant pre-market sell-off in Sotera Health's shares. Despite the mixed results, analysts maintained an overall "buy" rating on the stock, indicating confidence in the company's long-term prospects.
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