Cantel Medical Beats on Both Top and Bottom Lines

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Cantel Medical (NYS: CMN) reported earnings on March 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Cantel Medical beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Cantel Medical reported revenue of $97.3 million. The two analysts polled by S&P Capital IQ looked for a top line of $94.5 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $81.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.27. The two earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.27 for Q2 were 23% higher than the prior-year quarter's $0.22 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.0%, 330 basis points better than the prior-year quarter. Operating margin was 13.5%, 260 basis points better than the prior-year quarter. Net margin was 7.5%, 40 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $96.3 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $384.5 million. The average EPS estimate is $1.02.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 109 members out of 131 rating the stock outperform, and 22 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Cantel Medical a green thumbs-up, and four 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 $22.67.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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