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What's in the Cards for Cantel Medical (CMD) in Q1 Earnings?

Cantel Medical Corp. CMD is scheduled to release first-quarter fiscal 2020 results on Dec 10, before the closing bell.

In the last reported quarter, the company delivered a positive earnings surprise of 3.3%. However, it has a negative earnings surprise of 0.4%, on average, in the trailing four quarters.

Fiscal Q1 Estimates

The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 56 cents, suggesting a decline of 9.7% from the year-ago quarter. The same for revenues is pegged at $243.4 million, indicating growth of 7.9% from the year-ago reported figure.

Cantel Medical Corp. Price and EPS Surprise


Cantel Medical Corp. price-eps-surprise | Cantel Medical Corp. Quote

Factors to Influence Fiscal Q1

Sustained low double-digit recurring revenue growth and solid demand for capital equipment is likely to get reflected in Cantel Medical’s fiscal first-quarter Medical segment sales.

Further, the buyout of Omnia S.p.A is likely to have driven sales growth at the company’s Dental segment in the fiscal first quarter.

Probable sales growth at the Medical and Dental segments is likely to have driven total revenues in the fiscal first quarter.

In the fiscal fourth quarter of 2019, the company announced the buyout of Hu-Friedy – a premier global dental instrumentation and instrument management system manufacturer – which has been completed in the fiscal first quarter. The buyout is likely to have strengthened Cantel Medical’s position as leading global provider of innovative infection prevention and reprocessing workflow solutions.

The transaction is estimated to contribute around 10% to Cantel Medical’s fiscal year 2020 earnings.

However, continued weakness in its Hemodialysis Water business and sale of its High Purity Water business in Canada earlier in 2019 is likely to have weighed on its Life Sciences segment.

What Our Quantitative Model Suggests

Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: Cantel Medical has an Earnings ESP of -0.90%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: Cantel Medical carries a Zacks Rank #3.

Peer Releases

Here are three stocks that reported solid results for this earnings season.

Edwards Lifesciences Corporation EW delivered fourth-quarter 2019 adjusted EPS of $1.41, outpacing the Zacks Consensus Estimate by 15.6%. Fourth-quarter net sales of $1.09 billion surpassed the Zacks Consensus Estimate by 5.5%. The company carries a Zacks Rank #2. You can see _1link">the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher Scientific Inc. TMO delivered fourth-quarter 2019 adjusted EPS of $2.94, which surpassed the Zacks Consensus Estimate by 2.1%. Revenues of $6.27 billion outpaced the Zacks Consensus Estimate by 1.3%. The company carries a Zacks Rank of 2.

ResMed Inc. RMD reported fourth-quarter 2019 adjusted EPS of 93 cents, which beat the Zacks Consensus Estimate of 87 cents by 6.9%. Revenues were $681.1 million, surpassing the Zacks Consensus Estimate by 3.6%. The company sports a Zacks Rank #1.

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