UFP Technologies Q3 revenue beats, partly on MedTech demand

Overview

• US medical device contract manufacturer's Q3 revenue rose about 12%, beating analyst expectations

• Adjusted EPS for Q3 increased yr/yr

• Company cites broad-based MedTech demand and higher gross margin as drivers

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• ORGANIC SALES GROWTH - Co said Q3 sales grew 11.1% organically, reflecting broad-based demand across its portfolio

• MEDTECH DEMAND - MedTech sales grew 12.5% in Q3, driven by broad-based demand, per CEO Mitch Rock

• MARGIN IMPROVEMENTS - Co said gross margin increased to 29.4% in Q3, with improvements in legacy operations and scaling new programs in the Dominican Republic

Company press release:

Key Details

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 $355.00, about 25% above its November 2 closing price of $283.97

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Nov 3 - AtriCure Q3 revenue beats expectations on strong sales of pain management and appendage devices

• Nov 3 - Stevanato Group Q3 revenue beats estimates on biopharma segment

• Nov 3 - RxSight Q3 revenue falls on competitive pressures

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)