Published on 23 Feb 2022 on Zacks via Yahoo Finance

Colfax (CFX) Q4 Earnings & Revenues Surpass Estimates, Up Y/Y

Colfax Corporation CFX reported impressive fourth-quarter 2021 results. Its earnings estimates and sales surpassed the respective estimates by 3.5% and 2.2%, respectively.The machinery company’s adjusted earnings in the reported quarter were 59 cents per share, beating the consensus estimate of 57 cents. Also, the bottom line improved 16% from the year-ago figure of 51 cents on higher sales, driven by strengthening demand and margin generation. Supply-chain woes and logistic issues played spoilsports in the quarter.In 2021, the company’s earnings came in at $2.14, an increase of 52.9% on a year-over-year basis.

Revenue Details

In the quarter under review, Colfax’s net sales were $1,023.3 million, reflecting year-over-year growth of 23.6%. The results benefited from 17.9% growth in the existing businesses and a 7% positive impact from acquisitions. Movements in foreign currencies had a negative impact of 1.3% on its sales in the quarter.The company’s revenues surpassed the Zacks Consensus Estimate of $1,002 million.It currently reports under two business segments — Fabrication Technology and Medical Technology. The segmental information is briefly discussed below:Revenues from Fabrication Technology totaled $624.2 million, rising 20.4% year over year. The results gained from 22% growth in existing businesses and a 0.1% contribution from acquisitions. Foreign currency translation had an adverse impact of 1.7% on sales in the quarter. The segment contributed 61% to the quarter’s sales.Revenues from Medical Technology totaled $399.1 million, reflecting year-over-year growth of 28.9%. The results gained from an 18.4% contribution from acquisitions, partially offset by 0.6% negative impact from foreign currency translation. Existing businesses recorded growth of 11.1% in the quarter.In 2021, the company’s net sales came in at $3,854.3 million, up 25.5% year over year.Colfax is on track to split its fabrication technology and medical technology businesses into separate companies. The separation is expected to close in the first quarter of 2022. Post transaction completion, Colfax will adopt the name Enovis.