What happened?

On Tuesday morning, Cantel Medical (NYSE:CMD) released its earnings report for the first quarter of its fiscal year 2021, which ended on Oct. 31. The company's performance easily came in ahead of analyst estimates, and investors are bidding up its shares as a result. Cantel Medical's stock is up by 20.2% as of noon EST, after rising by as much as 22% earlier today.

So what

During its Q1 2021, Cantel Medical's net sales were $297 million, a 15.5% increase compared with the prior-year quarter. On average, analysts expected the company's net sales to be $279.83 million. Cantel Medical's net income was $24.5 million for the quarter, rising by a whopping 324.2% compared with the year-ago period; the company's earnings per share (EPS) was $0.57, a 307.1% jump versus the first quarter of its fiscal year 2020.

Hand drawing upward-bound graph on a board

Image source: Getty Images.

However, analysts are generally more interested in a company's adjusted (non-GAAP) earnings metrics. Cantel Medical's non-GAAP net income grew by 41.3% year over year to $38.5 million, and its non-GAAP earnings per share jumped by 38.5% year over year to $0.90. The average analyst estimate for the company's non-GAAP EPS was $0.37.

Now what

Cantel Medical's business has been negatively impacted by the pandemic, particularly due to a decrease in the number of elective procedures. And while the healthcare company continues to face some COVID-19-related headwinds, it benefited from strong growth in dental revenue thanks to its October 2019 acquisition of Hu-Friedy, a company that focuses on dental instrument manufacturing. Once the pandemic subsides, expect Cantel Medical's financial results to improve even more. 

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