UFP Technologies Q2 sales rise
Overview
UFP Technologies Q2 sales rise 37%, largely in line with analyst expectations, per LSEG data
Adjusted EPS for Q2 beats analyst expectations, growing 27% yr/yr
Company completed two acquisitions, expanding capabilities in medical device market
Outlook
Company expects Q3 to be the low point of labor inefficiencies
UFP anticipates gradual improvement in labor efficiency from Q4
Company sees growth safe patient handling and robotic-assisted surgery markets
UFP expects further growth from new and acquired operations
Result Drivers
ACQUISITIONS - Sales growth driven by 2024 acquisitions and organic growth of 5%, per CEO R. Jeffrey Bailly
MEDTECH SALES - MedTech business sales increased 46%, while Advanced Components sales declined 20%
LABOR COSTS - Incremental labor costs at AJR facility impacted gross margins
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Meet | $151.18 mln | $151.60 mln (4 Analysts) |
Q2 Adjusted EPS | Beat | $2.5 | $2.1 (4 Analysts) |
Q2 EPS | $2.23 | ||
Q2 Net Income | $17.18 mln | ||
Q2 Gross Profit | $43.54 mln | ||
Q2 Operating Income | $24.33 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for UFP Technologies Inc is $311.00, about 27.1% above its August 1 closing price of $226.57
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 23 three months ago
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