WILMINGTON, DE - Enovis Corporation (NYSE: ENOV), a medical technology company, reported fourth-quarter earnings that surpassed analyst expectations. The company announced an adjusted EPS of $0.79, which was $0.05 higher than the consensus estimate of $0.74. Revenue for the quarter also exceeded forecasts, coming in at $455.02M against an expected $445.32M.
Despite the strong fourth-quarter performance, the company's guidance for fiscal year 2024 fell short of analyst predictions. Enovis anticipates adjusted EPS to be between $2.50 and $2.65, which is below the consensus estimate of $2.71. The revenue forecast for FY2024 is set at $2.05-2.15B, including the impact of the recent Lima acquisition, compared to the consensus estimate of $2.119B. The midpoint of the guidance range for revenue, at $2.10B, is slightly below the analyst consensus, indicating a cautious outlook.
The company's CEO, Matt Trerotola, expressed satisfaction with the 2023 results, highlighting that both revenues and operating margins exceeded expectations. He also noted the company's continued investments in growth initiatives and mergers and acquisitions. The acquisition of LimaCorporate S.p.A. ("Lima") for an enterprise value of approximately €800M is expected to transform Enovis's Recon segment and contribute $290-300 M to 2024's revenue.
Enovis's fourth-quarter sales showed an 11% increase from the same quarter in the previous year, with organic growth accounting for 8% of the increase. The Recon segment, in particular, experienced an 18% growth, with 11% organic sales growth. Adjusted EBITDA for the quarter was $82M, or 18% of sales, reflecting a slight decline from the previous year's quarter due to the dilutive effect of recent acquisitions.
The company's stock movement following the earnings release and guidance announcement was not provided, so it is unclear how investors have reacted to the news. However, the company's strong performance in the fourth quarter, coupled with strategic acquisitions, positions Enovis for continued growth in the medical technology sector.
Investors and stakeholders will be watching closely to see how the integration of Lima and the rollout of new products across Recon and P&R segments will influence the company's performance in the transformative year ahead.
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