Medical device manufacturer Cantel Medical Inc. (CMD) recently announced results for fiscal first quarter 2021. Despite the difficult situation in the medical goods industry the company was able to increase its revenue and surpassed the estimate of the Wall Street.
Cantel Medical’s revenue rose by more than 15 percent year-on-year in the last quarter, to $297 million. Net income was $24.5 million, a year-on-year rise of 324 percent. This resulted in $0.57 in earnings per share, up 307% from last year. Net income (non-GAAP) rose to $38.5 million by more than 41 percent, and earnings per share hit $0.9, which is almost 39 percent year on year.
Cantel Medical specializes in offering a range of medical instruments, including endoscopic procedures and dialysis equipment. The COVID-19 pandemic had a negative effect on the business of the company, as during this time, planned procedures were limited in medical centers. As a result, some equipment purchases were halted. Cantel Medical is also required to take a variety of negative industry developments into consideration, but is generally positive. The growth of the existing markets is one of the reasons for optimistic expectations. Last year the company acquired Hu-Friedy, a manufacturer of dental equipment, which helped compensate for declines in some other sectors. Moreover, outside the United States, Cantel Medical continues to expand revenues. Currently, the US sector accounts for about 80 percent of the overall sales of the supplier.
However it is important for investors that even under challenging conditions, Cantel Medical was able to increase revenue. This may be an indication that when the economy improves and the medical sector returns to normal operations, the business will start to expand rapidly.
Cantel Medical Inc. (CMD) stock was worth $76.77 at the close of the trading on Friday, and was up 78.49% over the past three months.