Cantel Medical's second quarter results top estimates; shares rally 10%
Cantel Medical (NYSE:CMN), which makes infection prevention and control products, reported Wednesday better-than-expected second quarter results as profit and sales during the period saw double digit growth.
For the second quarter ending January 31, the company's earnings rose 17% to $5.7 million, or 33 cents per diluted share, from $4.9 million, or 29 cents per diluted share, for the year-ago period.
Meanwhile, sales rose 21.7% year-over-year to $81 million.
Analysts polled by Thomson Reuters predicted the New Jersey-based company would earn 31 cents a share on revenues of $73.8 million.
While the company did not report segmented results, CEO Andrew Krakauer said revenue from the unit that makes disinfectants for endoscopes, a device used to examine internal organs, rose 70%.
Krakauer also said the water purification and filtration business saw improved sales and operating income, partially helped by the company's October acquisition of Gambro, a maker of kidney therapy devices.
Sales from the healthcare disposables segment, which makes face masks and towels, showed modest sales growth after adjusting for unusually high sales due to the H1N1 crisis in the year-ago period.
At quarter end, the company had current assets of roughly $101 million, $16 million of which was cash, and $27.5 million of which was debt.
On Wednesday, Cantel's shares rose 10.1% to trade at $25.75 as of 3:07 pm EST.
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