Shares of Cantel Medical (NYSE:CMN) ticked higher Wednesday after the company reported a 28% surge in fiscal 2010 income, driven by improved demand for its consumables and services.
The provider of infection prevention and control products in the healthcare market posted net income for the year ended July 31 of $19.94 million, or $1.18 a share, compared with $15.57 million, or 94 cents a share, in the same quarter last year, assisted by a 5% increase in sales to $273.95 million.
Cantel CEO Andrew Krakauer said the company was “pleased” with the double digit earnings growth, attributing the gains to its diverse portfolio and focus on growing its consumables and service revenue.
Fourth-quarter net income was $4.62 million, or 27 cents a share, up from $4.279 million, or 26 cents a share, in the same quarter last year.
Revenue grew 5% to $69.8 million from $66.79 million the earlier-year period.
The results trumped average analyst estimates polled by Thomson Reuters of 25 cents a share for earnings and $67.34 million in revenue.
Quarterly sales growth was driven by robust demand in its endoscope reprocessing and water purification units, up 24% and 16%, respectively.
Even with strong Crosstex performance however, sales were still lower compared with a year ago, due mostly to abnormally high fourth-quarter demand for face masks spurred from the H1N1 flu.
Heading into the new fiscal year, Cantel said it plans on “significantly” increasing its research and development spending and new product development, all while leveraging its investments in sales and marketing and “aggressively” pursuing acquisitions to boost future revenues.