Cantel Medical Corp. Keeps Pace on Its Goal

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Cantel Medical (NYSE: CMD) reported results for the first quarter, posting double-digit revenue and earnings growth to start its fiscal year. It's hard to ask for more from the medical-supply company.

Cantel Medical results: The raw numbers

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Q1 2018

Q1 2017

Year-Over-Year Change


$212.8 million

$187.7 million


Income from operations

$31.6 million

$27.1 million


Earnings per share




What happened with Cantel Medical this quarter?

  • Sales of endoscopy products led the group with revenue growth of 19.8%. Some of that came from the addition of BHT, a German company Cantel acquired in August. But even backing out acquisitions, endoscopy sales of grew 10.7% organically. A lot of the growth is coming from the installed base of endoscopy machines driving recurring revenue, which increased 20.8% year over year.
  • Water purification and filtration sales increased 7.4%, and the unit still has a backlog of $66 million worth of products that have been ordered but need to be shipped and installed.
  • Sales of healthcare disposables increased 5.7%, but income from the segment increased at a higher rate thanks to higher-margin branded products.
  • The company generated $30.1 million in cash from operations, up 20.7% year over year, helping it pay down $19.3 million of debt. Net debt now sits at $130.8 million.

What management had to say

Jorgen Hansen, Cantel's president and CEO, said the company isn't done making acquisitions yet and hinted they could come sooner rather than later:

Hansen also highlighted some new products the company is working on to boost revenue organically:

Looking forward

Management is sticking with guidance for its current fiscal year that was given when it reported last quarter. Revenue should grow between 12.5% and 13.5%, with earnings per share (EPS) expected to grow by 20% to 25% while adjusted EPS will should increase only 10% to 13%.

As long as Cantel can keep doing what it did in the first fiscal quarter, it should be able to hit those goals.

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Brian Orelli has no position in any of the stocks mentioned. The Motley Fool recommends Cantel Medical. The Motley Fool has a disclosure policy.