UPDATE: Colfax Corp. (CFX) Tops Q4 EPS by 1c, Revenues Miss; Offers FY21 EPS Mid-Point Guidance Above Consensus, 1Q EPS Views Below Consensus

Colfax Corp. (NYSE: CFX) reported Q4 EPS of $0.51, $0.01 better than the analyst estimate of $0.50. Revenue for the quarter came in at $828.12 million versus the consensus estimate of $830.72 million.

“Our strong revenue, earnings and cash flow performance demonstrates further recovery in our markets and effective operating execution,” said Matt Trerotola, Colfax President and CEO. “Customer demand in our Fabrication Technology business strengthened at a faster pace than expected, contributing to strong sales and profit performance. Sales in our MedTech business started the quarter as expected and showed strong relative performance despite constraints on elective surgeries that deferred some procedures and related revenue. We enter the new year with a clear path to healthier market conditions, strong growth in financial results and accelerating momentum.”

The Company also announced that it recently completed the acquisition of two medical technology businesses. LiteCure®, a market leader in therapeutic laser technology for human and animal health, strengthens Colfax’s leadership position in physical therapy and rehabilitation with higher growth opportunities. Trilliant Surgical® provides innovative surgical solutions in the high-growth foot and ankle market segment. Combined with the previously announced acquisition of the Scandinavian Total Ankle Replacement (STAR™) system, Colfax has established a new platform to expand the Company’s leadership in extremities.

“These acquisitions are consistent with our strategy to accelerate the growth of our Medical Technology portfolio through attractive additions in strategic, high-growth and high-margin adjacency businesses,” said Mr. Trerotola. “These transactions are immediately accretive to growth and gross margins, with operating margins projected to rapidly expand with revenue growth over time. Our disciplined acquisition program remains active, and we expect to announce additional transactions this year.”

GUIDANCE:

Colfax Corp. sees Q1 2021 EPS of $0.35-$0.40, versus the consensus of $0.43.

Colfax Corp. sees FY2021 EPS of $2.00-$2.15, versus the consensus of $2.02.

Colfax also announced expectations for significant growth in sales, earnings and cash flow in 2021. Revenue is expected to grow 15-18% from the prior year, sequentially improving throughout the year due to seasonality and expected recovery in customer demand. The Company expects adjusted earnings to grow at least 44% to $2.00 to $2.15 per diluted share and is projecting free cash flow of $250 million or more. For the first quarter 2021, Colfax expects adjusted earnings of $0.35 to $0.40 per diluted share.

For earnings history and earnings-related data on Colfax Corp. (CFX) click here.

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