Enovis Beats Q1 Earnings Estimates, Raises 2023 Guidance

• Enovis Corp ENOV reported Q1 2023 sales growth of 8% Y/Y and 9% organically to $406 million Thursday, beating the consensus estimate of $391 million. 


• Sales in the Reconstructive segment grew 19% Y/Y (both reported and organically) and in the Prevention and Recovery segment by 2% Y/Y (+4% Y/Y organically) in the quarter.


• The company reported an operating loss of $25 million vs. $31 million one year ago.


• Adjusted EBITDA came in at $56 million, higher than $48 million in the prior year, with a margin of 13.9% (vs 12.7% in Q1 2022). 


• Adjusted EPS of 44 cents beat the consensus estimate of 37 cents.


• ENOV announced a deal to acquire Novastep to enhance its position in the emerging bunion segment, with the transaction expected to close in Q2 2023.


• 2023 Outlook Raised: ENOV now expects organic revenue growth of 6%-7% (vs. +5%-6% earlier), adjusted EBITDA of $259 million-$267 million (vs. $255 million-$265 million previously) and adjusted EPS of $2.18-$2.32 (vs. $2.15-$2.30 earlier and consensus of $2.23).


• "We had a great start to the 2023 fiscal year, exceeding our expectations with strong organic growth and expanding margins while supporting key investments in innovation and acquisitions. We outperformed our markets with double-digit organic growth in Recon and mid-single-digit organic growth in P&R. We look forward to continuing our operating momentum while deploying our strong balance sheet against a robust M&A pipeline." said Matt Trerotola, CEO.


• ENOV Price Action: ENOV shares were trading down 2.43% at $57.10 Thursday. 

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