Why Sotera Health Stock Is Falling Today
Shares of Sotera Health (NASDAQ: SHC) were falling 8.6% as of 12:36 p.m. EST on Wednesday and dropped as much as 12.8% earlier in the day. The decline came after the company announced its third-quarter results Wednesday morning.
Sotera reported revenue in the third quarter of $226 million, up 13% year over year and higher than the average analysts' estimate of $221.6 million. The company posted adjusted earnings per share (EPS) of $0.21. This result reflected improvement from adjusted EPS of $0.12 in the prior-year period. It also narrowly topped the consensus estimate of $0.20.
With both revenue and earnings beats, why is the healthcare stock falling? Sotera narrowed its full-year 2021 revenue guidance. The company previously forecast revenue growth of between 12% and 15% but lowered the upper end of the range to 14%. Sotera now looks for 2021 revenue between $920 million and $930 million, below the average analysts' estimate of $932.9 million.
Source Fool.com
