Latest news with #UFPTechnologies'
Yahoo
20-05-2025
- Business
- Yahoo
UFPT Q1 Earnings Call: Medical Segment Growth and Strategic Expansion Drive Outperformance
Medical products company UFP Technologies (NASDAQ:UFPT) announced better-than-expected revenue in Q1 CY2025, with sales up 41.1% year on year to $148.1 million. Its non-GAAP profit of $2.47 per share was 22.9% above analysts' consensus estimates. Is now the time to buy UFPT? Find out in our full research report (it's free). Revenue: $148.1 million vs analyst estimates of $139.9 million (41.1% year-on-year growth, 5.9% beat) Adjusted EPS: $2.47 vs analyst estimates of $2.01 (22.9% beat) Adjusted EBITDA: $30.24 million vs analyst estimates of $28.26 million (20.4% margin, 7% beat) Operating Margin: 15.8%, in line with the same quarter last year Market Capitalization: $1.95 billion UFP Technologies' first quarter was shaped by outsized growth in its medical business segments, particularly in safe patient handling, interventional, and infection prevention, all of which benefited from a combination of new account wins and increased overall market demand. Management attributed much of this growth to successful integration of recent acquisitions, notably AJR, which delivered significant revenue gains and expanded UFP Technologies' exposure to high-growth medical categories. CEO Jeff Bailly stated, 'The scale and rapid growth of our safe patient handling business are strategically important as it adds a new high-growth market segment for our medical portfolio and further diversifies our company.' Looking ahead, management emphasized continued investment in expanding manufacturing capabilities, particularly in the Dominican Republic, as well as progress on new product launches within robotic surgery. While leadership expects robotic surgery growth to be modest following an inventory build in 2024, they highlighted the potential for new program launches later this year and ongoing discussions to support broader needs for key customers. CFO Ron Lataille noted that tariff-related risks remain limited, with most potential costs expected to be passed on, though some uncertainty may persist in customer demand and material sourcing. First quarter results were mainly driven by sharp growth in medical markets and effective integration of new acquisitions. Management discussed operational efficiency, competitive positioning, and expansion initiatives as drivers of the results. Safe Patient Handling Expansion: The safe patient handling segment became UFP Technologies' second largest business, growing rapidly due to both new market share wins and increased demand. This was enabled by the AJR acquisition and exclusive manufacturing agreements with key customers. Diversified Medtech Growth: Significant gains were seen in interventional, surgical infection prevention, orthopedics, and advanced wound care, each growing over 25% year over year, as pandemic-related inventory destocking at customers subsided. Acquisition Integration: Management credited recent acquisitions, especially AJR, for accelerating growth. Acquisitions have outperformed prior run rates, with cross-selling and expanded capabilities allowing acquired companies to grow faster than they would have independently. Robotic Surgery Transition: The robotic surgery segment experienced a year-over-year decline following an inventory build, with management guiding for only modest growth in 2025. However, two new programs are set to launch later this year, expected to provide incremental revenue in 2026. Dominican Republic Facility Investment: Major investments in manufacturing and R&D capacity in the Dominican Republic position the company to support exclusive customer contracts and improve cost efficiency. These moves are considered a key competitive advantage for future growth. Management's outlook for the remainder of the year centers on sustained momentum in medical end markets, continued integration of recent acquisitions, and strategic manufacturing expansion, while monitoring tariff implications and customer demand patterns. Manufacturing Expansion: Ongoing buildout in the Dominican Republic is expected to support capacity for new and existing contracts, enabling cost efficiencies and increasing the scope for future business. New Product Launches: The ramp of new robotic surgery programs in the second half of the year could shift growth drivers, with meaningful contributions anticipated in 2026. Tariff and Supply Chain Risk: While management expects to pass most tariff costs to customers, they acknowledge potential uncertainties in demand and inflationary effects from global sourcing. Jaeson Schmidt (Lake Street): Asked whether anticipated 'modest' growth in robotic surgery applies to both the largest customer and the overall segment. Management confirmed low single-digit growth is expected for both, supported by new programs that will add incremental gains. Brett Fishbin (KeyBanc): Inquired about growth acceleration in medical segments outside of robotics, particularly infection prevention and acquisitions. Management cited destocking headwinds easing and cross-selling from acquisitions as drivers. Justin Ages (CJS): Questioned whether tariffs might impact UFP Technologies differently compared to competitors. Management noted competitors with Chinese manufacturing face greater headwinds, while the company's U.S. and Dominican Republic base offers a relative advantage. Andrew Cooper (Raymond James): Queried about the impact of price reductions in new safe patient handling contracts and whether operating profit margins would be maintained. Management expects margin expansion despite lower revenue per unit, driven by improved efficiency and market growth. Andrew Cooper (Raymond James): Asked about long-term manufacturing footprint strategy and potential expansion into Europe or Asia. Management indicated continued focus on the Dominican Republic, with the possibility of expanding to Asia-Pacific through joint ventures to support client needs. In the coming quarters, the StockStory team will focus on (1) the pace and success of manufacturing expansion in the Dominican Republic and the associated operational efficiencies, (2) the performance and integration of recent acquisitions, especially in safe patient handling, and (3) progress on new product launches in the robotic surgery segment. We will also monitor tariff developments and any impact on customer demand and raw material costs. UFP Technologies currently trades at a forward P/E ratio of 27.8×. In the wake of earnings, is it a buy or sell? Find out in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
28-02-2025
- Business
- Yahoo
UFP Technologies, Inc. (NASDAQ:UFPT) Full-Year Results: Here's What Analysts Are Forecasting For This Year
It's been a sad week for UFP Technologies, Inc. (NASDAQ:UFPT), who've watched their investment drop 13% to US$232 in the week since the company reported its annual result. UFP Technologies reported in line with analyst predictions, delivering revenues of US$504m and statutory earnings per share of US$7.58, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. See our latest analysis for UFP Technologies Taking into account the latest results, the most recent consensus for UFP Technologies from three analysts is for revenues of US$582.7m in 2025. If met, it would imply a meaningful 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.7% to US$8.05. In the lead-up to this report, the analysts had been modelling revenues of US$593.5m and earnings per share (EPS) of US$8.54 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts. It might be a surprise to learn that the consensus price target was broadly unchanged at US$381, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values UFP Technologies at US$392 per share, while the most bearish prices it at US$370. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting UFP Technologies is an easy business to forecast or the the analysts are all using similar assumptions. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that UFP Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.8% per year. So it's pretty clear that, while UFP Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$381, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple UFP Technologies analysts - going out to 2026, and you can see them free on our platform here. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for UFP Technologies that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
