What happened

Shares of Steris (STE -1.09%) were up 10% Thursday morning, after rising as high as 11.8%. The medical equipment company that sells sterilization products to hospitals and other healthcare companies announced fiscal 2023 fourth-quarter earnings on Wednesday after the markets closed. The stock is up more than 12% this year.

So what

The company reported fourth-quarter revenue of $1.38 billion, up 14% year over year, and net income of $52.3 million, or $0.52 in earnings per share (EPS), which represent a rise of 258% and 262%, respectively, over the same period last year.

All but one of the company's four segments grew revenue in the quarter year over year, led by healthcare, up 20%; life sciences, up 10%; and applied sterilization technologies, up 7%. Dental revenue fell 2%, year over year.

Steris also released guidance for 2024, saying it expects annual revenue to grow 7% to 8% and EPS to be between $5.67 and $5.87, representing a climb of 439% at the midpoint. The company also said it expects adjusted EPS between $8.55 and $8.70 for fiscal 2023, up from earlier estimates of between $8 and $8.10.

Now what

Some of the challenges that the company faced last year, such as supply chain issues and lower procedure volumes, seem to be lessening, CEO Dan Carestio said in the company's release. The fourth quarter's numbers beat most analysts' estimates, and investors reacted positively.

The company also helped boost shares last week when it announced it planned to repurchase $500 million of the company's shares. Steris also has a quarterly dividend of $0.47, which it raised last year by 9%, marking the 17th consecutive year the company has increased its dividend.