Seeking Alpha
Profile| Send Message| ()  

Cantel Medical Corp. (CMN) is rallying after reporting another strong quarter in early December. The current-year estimate has been rising for the last few months as analysts anticipate strong earnings growth from the company.

Company Description

Cantel Medical Corp. provides infection prevention and control products for the healthcare market primarily in the United States. The company was founded in 1963 and has a market cap of $212 million.

Third-Quarter Results

Cantel is fresh off the heels of another impressive quarter, reported on Dec, with results that were easily ahead of estimates.

Revenue increased 7% from last year to $64,406, 000. Net income spiked up to $3.33 million, up from last year's $1.94 million. This produced earnings of 22 cents per share, safely ahead of analyst estimates of 14 cents.

Consistent Results

This was the third time in the last three quarters that the company has surprised and beat estimates, having done so by an average of 41%.

Financial Standing

During the quarterly report the company noted that it was in strong financial standing, on account of its balance sheet and ability to generate free cash-flow. Cantel has $15.74 million in cash on its books and reduced its debt from the same quarter last year 21% to $41.6 million.

Estimates

Analyst estimates have continued to tick higher over the last few months, with the current-year estimate up to 78 cents per share. The next-year estimate is pegged at 88 cents, a 13% earnings projection.

The Chart

Shares of CMN have been on a nice rally since the beginning of December, climbing from just above $7.50 to the recent high above $13. Take a look at the chart below.

click to enlarge

Source: Cantel Medical Rallies After Another Strong Quarter