Enovis (NYSE: ENOV) today reported Q2 results that beat The Street on earnings but missed on revenue, with the ortho device company joining the host of medtech companies scaling back earnings projections for the year amid macroeconomic headwinds.
Wilmington, Delaware–based Enovis — the parent company of DJO — earned $121 million, or $2.21 per diluted share, off $395 million in sales for the three months ended July 1, 2022, more than doubling its earnings and growing the top line 11% compared with Q2 2021.
Adjusted to exclude one-time items, Enovis saw earnings per share of 59¢, 9¢ ahead of The Street, where analysts expected sales of $400.97 million.
“We again achieved faster growth than our markets this quarter in both of our business segments,” Enovis CEO Matt Trerotola said ina. news release. “We are executing our strategic priorities, investing in innovation and acquisitions to support our goal to achieve a sustainable high-single-digit organic growth rate by 2024.”
Enovis reaffirmed its 2022 organic growth projection of 6–9%. But it scaled back adjusted EPS guidance to $2.15–2.35 to reflect currency pressures and a roughly 10¢ per share one-time tax planning benefit following the spin-off of ESAB Corp. on April 4.
“Our teams continue to successfully battle supply chain friction, inflation, and inconsistent market recovery,” Trerotola said. “We have been achieving our operating guidance this year, but currency pressures are now expected to be a significant headwind in 2022. Accordingly, we are adjusting our full-year outlook.”
Investors reacted by sending ENOV shares up more than 2% to $60.65 apiece in morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly.