WILMINGTON, DE — Enovis™ Corporation (NYSE: ENOV) announced its financial results for the second quarter ending June 28, 2024. The company reported net sales of $525 million, reflecting a 23% growth on a reported basis and 5% on a comparable sales basis compared to the same quarter in 2023.
Second-quarter results showed stable performance in Prevention & Rehabilitation (P&R) and strong growth in International Reconstruction (Recon). Recon sales increased by 60% on a reported basis and 7% on a comparable sales basis. P&R sales grew 2% on a reported basis and 3% on a comparable basis.
Enovis reported a net loss from continuing operations of $18 million, representing 3.5% of sales. Adjusted EBITDA for the quarter was $90 million, making up 17.2% of sales, an improvement of 190 basis points from the previous year. Net loss per share from continuing operations was $0.34, while adjusted earnings per diluted share stood at $0.62.
“We continue to execute against our plan for the year and are off to a great start integrating our transformational Lima acquisition,” said Matt Trerotola, Chief Executive Officer of Enovis. “The progress we have made year-to-date, as well as our robust lineup of important new product introductions, sets us up well for accelerating growth and profitability into 2025 and beyond.”
Second Quarter 2024 Business Highlights
- Received FDA 510k clearance for Arvis 2.0 Shoulder and Altivate Reverse Glenoid system, with both launches expected in Q3 2024.
- Opened a Business Technology Center in Lisbon to enhance digitization and customer experience.
- Celebrated the grand opening of a new manufacturing facility in San Daniele to expand and optimize global manufacturing capabilities.
- Improved Q2 adjusted EBITDA margin by 190 basis points year over year, driven by the addition of Lima, product and geographic mix, new product launches, and execution on key EGX initiatives.
2024 Financial Outlook
Enovis narrowed its revenue forecast and reaffirmed its adjusted EBITDA expectations for 2024. The company estimates full-year revenue to be between $2.08 billion and $2.13 billion, and adjusted EBITDA to range from $368 million to $383 million. Full-year adjusted earnings per diluted share guidance has been raised from $2.52-$2.67 to $2.62-$2.77.
Buy, Sell, or Hold?
Enovis’ strong sales growth and improved EBITDA margins indicate a positive trend. The successful integration of recent acquisitions and promising new product launches further bolster the company’s outlook. Given these factors, Enovis is a Buy. Investors should keep an eye on the company’s execution of its growth strategy and its ability to maintain profitability.
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