Enovis’ (NYSE: ENOV) second-quarter non-GAAP earnings per share of 90¢ beat Wall Street expectations, but net revenue only fell in line with analysts’ predictions.
The orthopedic device company reported $582.7 million in net sales, essentially matching analysts’ $581.8 million expectations. Despite reporting a second-quarter net loss of 2¢ per share, adjusted net earnings per diluted share (90¢) beat market expectations of 85¢ per share by a nickel.
Enovis also reaffirmed its financial expectations for 2026, with revenue expected in the range of $2.31 to $2.37 billion, incorporating 4% to 6% organic revenue growth. The company expects its full-year adjusted EPS to be within a range of $3.52 to $3.73.
Investors appear to have wanted more. The market reacted quickly as Enovis stock dropped more than 10% to $26.97 apiece by midday trading today. The S&P 500 was down slightly.
“The quarter came in softer than expected and, importantly, underscores what increasingly looks like a real slowdown in ortho, with management now effectively signaling a more 4Q-weighted back half,” J.P. Morgan Medtech Analyst Robbie Marcus said. “That said, Enovis framed the deceleration differently than peers, pointing to transitory macro disruptions in Western Europe (e.g., strikes, fires, heat) and noting a higher exposure in the region vs. competitors.”
Enovis’ net sales increased 3.2% year-over-year, mostly driven by the company’s Reconstructive business. The company also reported a $1 million second-quarter net loss, or 0.2% of sales.
The Reconstructive segment earned $295 million in revenue for the quarter, up 8% on a reported basis compared to the same quarter last year.
Related: Read MassDevice’s Orthopedic Device Companies Special Report
Enovis’ Prevention & Recovery segment sales fell 1% year-over-year, with sales totaling $288 million. Its Extremities business saw 7% organic sales growth, and Enovis’ Hips and Knees segment earned 5% organic sales growth globally.
“Our second-quarter results reflect a more focused organization and a portfolio that has been meaningfully reshaped over the past several years,” Enovis Chief Executive Officer Damien McDonald said in a news release. “Commercial execution is improving, our innovation pipeline continues to strengthen our competitive positioning, and our teams are demonstrating agility in navigating increasingly dynamic end markets.
We are encouraged by this progress but acknowledge there is more work ahead to deliver consistent, durable growth, particularly as we anticipate a more dynamic macroeconomic environment in the second half. We remain focused on winning each day through continuous improvement and disciplined execution.”
