Enovis Corp (ENOV) Reports 9% Sales Growth in Q3 2023, Raises Full-Year Outlook
Enovis Corp (NYSE:ENOV) reported a 9% increase in net sales for Q3 2023, reaching $418 million.
The company reported a net loss from continuing operations of $0.36 per share, with adjusted earnings per diluted share of $0.56.
Enovis Corp (NYSE:ENOV) raised its full-year growth and adjusted profit outlook.
The company's adjusted EBITDA for Q3 2023 was $65 million, or 15.7% of sales, an improvement of 80 basis points versus the same quarter in the previous year.
Enovis Corp (NYSE:ENOV), an innovation-driven medical technology growth company, announced its financial results for the third quarter ended September 29, 2023, on November 7, 2023. The company reported a 9% increase in net sales, reaching $418 million, including 6.2% organic sales per day growth. This growth reflects continued stability in Prevention and Recovery (P&R), above-market growth in Reconstructive (Recon), and the impact of recent acquisitions.
Financial Highlights
Enovis Corp (NYSE:ENOV) reported a third-quarter net loss from continuing operations of $19 million and adjusted EBITDA of $65 million, or 15.7% of sales, an improvement of 80 basis points versus the comparable prior year quarter. This includes the temporary dilution of recent acquisitions. The company reported a third-quarter 2023 net loss from continuing operations of $0.36 per share, and adjusted earnings per diluted share of $0.56.
Enovis Corp (NYSE:ENOV) also updated its financial expectations for 2023. Revenue is expected to organically grow 7.4-7.6% from the prior year versus previous expectations of 7-7.5% growth, and adjusted EBITDA is forecasted to be $264-$270 million as compared with the previous outlook of $262-$270 million. The company also updated its full-year adjusted earnings per diluted share guidance to $2.30-$2.40 from $2.22-$2.36.
Business Highlights
Enovis Corp (NYSE:ENOV) reported double-digit Reconstructive growth including +18% in US hip/knee. The company's gross profit margin improved 200 basis points and adjusted gross profit margin improved 140 basis points from the same quarter in 2022. Adjusted EBITDA margin improved 80 basis points year over year. The company also strengthened and further globalized the Reconstructive segment with the definitive agreement to acquire LimaCorporate S.p.A. (Lima) for an enterprise value of approximately 800 million.
Financial Tables
Enovis Corp (NYSE:ENOV) reported net sales of $417.5 million for the three months ended September 29, 2023, an increase from $383.8 million for the same period in 2022. The company's gross profit for the same period was $243.0 million, up from $215.8 million in 2022. The gross profit margin for the period was 58.2%, an improvement from 56.2% in 2022.
For the nine months ended September 29, 2023, the company reported net sales of $1,252.2 million, up from $1,154.4 million for the same period in 2022. The gross profit for the period was $726.4 million, an increase from $637.6 million in 2022. The gross profit margin for the period was 58.0%, an improvement from 55.2% in 2022.
Enovis Corp (NYSE:ENOV) ended the third quarter with a net loss from continuing operations of $19.5 million, compared to a net loss of $65.9 million for the same period in 2022. The company's adjusted EBITDA for the period was $65.4 million, up from $57.2 million in 2022.
Enovis Corp (NYSE:ENOV)'s financial results reflect the company's strong momentum and its commitment to achieving its 2023 goals of high-single-digit growth and strong margin expansion.
Explore the complete 8-K earnings release (here) from Enovis Corp for further details.
This article first appeared on GuruFocus.
