The Little Falls, N.J.-based infection prevention products and services company posted profits of $15.8 million, or 37¢ per share, on sales of $236.9 million for the three months ended April 30, 2020, for a 93.1% bottom-line gain on sales growth of 3.7%.
Adjusted to exclude one-time items, earnings per share were 16¢, 4¢ ahead of Wall Street, where analysts were looking for sales of $235.4 million.
Cantel Medical said in a news release that a decline in organic sales came as a result of the reduction of elective procedures caused by the COVID-19 pandemic, which mostly affected the last five weeks of the third quarter. Adjusted earnings per share dropped from 55¢ in the third quarter of 2019 in a trend that was driven by the effects of the pandemic.
The company said its medical and dental segments were primarily impacted, although most impacts were offset by a favorable fair value adjustment to a Hu-Friedy earnout liability.
“The impact from the COVID pandemic has been historic for the industry, our customers, patients and our company,” Cantel Medical president & CEO George Fotiades said in the release. “I am proud of how our company has operated through these challenges and expect that we will be in a strong position to serve our customers during the recovery.
Our mission in infection prevention has never been more critical, as we continue to support those on the front lines of this pandemic by supplying much-needed PPE, disinfectant chemistry, and other infection prevention solutions to those who need it most.”
Cantel Medical did not offer guidance for the year but said it expects its fourth-quarter revenue to come in below the third-quarter totals. However, the company anticipates that daily sales rates will continue to improve throughout the three-month period.
CMD shares were up 3.1% at $47.58 per share in early-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down -0.4%.