Cantel Medical Hikes Dividend - Analyst Blog
October 26 2011 - 1:00PM
Zacks
The Board of leading infection prevention and control products
maker Cantel Medical (CMN) has approved a raise in
the company’s semi-annual cash dividend to 7 cents per share from 6
cents, representing a roughly 16.7% increase. This lifts Cantel’s
annual dividend to 14 cents per share from the current payout of 12
cents and equates to a yield of roughly 0.6%.
The revised dividend is payable on January 31, 2012, to
shareholders of record as on January 17, 2012. The dividend
increase underscores the company’s healthy financial position.
New Jersey-based Cantel, which operates through six segments,
offers its infection prevention and control products to dialysis,
dental, endoscope processing, water purification, therapeutic
filtration and specialty packaging markets. It competes with
Siemens (SI) among others.
The company’s fourth-quarter 2011 (ended July 31) earnings of 27
cents per share missed the Zacks Consensus Estimate of 30 cents.
Profit rose just 1% year over year as higher costs (including
acquisition expenses) neutralized healthy double-digit growth in
revenues.
Revenues surged 23% year over year to a record $86 million,
topping the Zacks Consensus Estimate of $82 million. The strong
growth was led by Cantel’s Endoscope Reprocessing business. The
company saw growth across its three major businesses in the
quarter.
Cantel continues to successfully execute its three-pronged
strategy (new product development, sales and marketing programs and
acquisitions) to spur growth. Moreover, the company remains
committed to its strategy of growth through acquisitions.
Most recently, Cantel acquired (its largest buyout so far)
privately-held disposable infection control products maker Byrne
Medical for $100 million, enabling it to broaden its
gastrointestinal (GI) endoscopy business. While acquisition-related
costs hurt Cantel’s profits in fiscal 2011, it remains optimistic
that acquisitions coupled with new products and investment in
sales/marketing infrastructure will significantly contribute to its
sales and earnings in fiscal 2012.
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