Cantel Medical (NYSE:CMN) shares are down nearly 4% this morning after the medical device company reported its fiscal 2nd-quarter results.
Little Falls, N.J.-based Cantel posted profits of $11.1 million, or 27¢ per share, on sales of $119.0 million for the 3 months ended Jan. 31, for bottom-line growth of 6.4% on 11.9% sales growth.
Despite a consensus estimate on Wall Street for earnings of 26¢ per share, CMN shares slipped 5.3% to a $32.78 close yesterday. The stock was down 3.5% to $31.62 apiece as of about 11:30 a.m. today.
President & CEO Andrew Krakauer told analysts during a conference call yesterday that the 2.3% excise tax on medical devices enacted as part of the Affordable Care Act pushed its net income down by about 4%.
"And if not for the medical device tax, adjusted net income … growth would have been approximately 16%," Krakauer told the analysts.
"We are pleased to have delivered record sales and solid earnings performance in the second quarter. These positive results confirm the continued success of our strategic approach to growth which includes investing in new product development, sales and marketing programs and acquisitions. Most importantly, for the third consecutive quarter we had strong organic sales growth of 10%," he added in prepared remarks.
