Colfax (NYSE:CFX) shares ticked up slightly on fourth-quarter results that demonstrated impressive growth in medical device sales.
The Wilmington, Delaware-based company posted profits of $10 million, or 6¢ per share, on sales of more than $1 billion for the three months ended Dec. 31, 2021, for a 75.6% bottom-line slide on sales growth of 23.6%. Adjusted to exclude one-time items, earnings per share were 59¢.
Colfax’s medical technology segment brought in revenues of $399 million for the quarter, representing a 29% leap from the same period a year prior.
The company also confirmed that it has completed most steps in preparation for the spinoff of a standalone orthopedic device business — which will be called Enovis — to take place near the end of the first quarter, subject to final approval from the board as well as market, regulatory and other customary conditions.
“Upon separation, both of these leading businesses will have the financial flexibility to achieve their long-term strategic goals of accelerating growth, expanding margins and generating cash flow to create long-term shareholder value,” Colfax President and CEO Matt Trerotola said in a news release.
The company expects Enovis to grow by between 10% and 14% in 2022, generating adjusted EBITDA of between $280 million and $300 million.
CFX shares were up 0.2% at $41.97 per share in mid-afternoon trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was virtually unchanged.