The 10-second takeaway
For the quarter ended April 30 (Q3), Cantel Medical beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Cantel Medical reported revenue of $97.2 million. The two analysts polled by S&P Capital IQ expected sales of $96.1 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $82.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.30. The two earnings estimates compiled by S&P Capital IQ predicted $0.27 per share. GAAP EPS of $0.30 for Q3 were 58% higher than the prior-year quarter's $0.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.8%, 590 basis points better than the prior-year quarter. Operating margin was 14.2%, 490 basis points better than the prior-year quarter. Net margin was 8.4%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $98.8 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $385.5 million. The average EPS estimate is $1.06.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 107 members out of 129 rating the stock outperform, and 22 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Cantel Medical a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cantel Medical is buy, with an average price target of $26.00.
Over the decades, small-cap stocks, like Cantel Medical have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Cantel Medical to My Watchlist.