Cantel Medical Corp. (NYSE:CMD) stock continued to rally this week, rising over 22.7% in the last four weeks (Source: Finviz.com) after the company reported 324.2% rise in the net income to $24.5 million for the first quarter of FY 21.

The company has therefore posted better than expected results for the period. The company’s non-GAAP gross margins expanded by 280 basis points year-over-year, to 50.1%. The expansion was  on the back of the return of volumes, combined with the more disciplined approach in managing manufacturing costs, as well as favorable mix due to the higher sales of consumable products. On a non-GAAP basis, op profit grew 52% year-over-year to $64.5 million. The company generated cash flow from operations for the quarter of $62 million, which represents an increase of 594.3% year-over-year. CMD ended the first quarter with $258 million in cash. Working capital declined 9% sequentially to $426.9 million

CMD in the first quarter of FY 21 has reported the adjusted earnings per share of 90 cents, significantly beating the analysts’ estimates for the adjusted earnings per share of 37 cents. The company had reported the adjusted revenue growth of 15.5 percent to $297 million in the first quarter of FY 21, beating the analysts’ estimates for revenue of $279.83 million. The growth came due to procedural volumes and demand for infection prevention products in both medical and dental accelerating throughout the first quarter. The Medical segment fell by negative 2.2% on an organic basis in the quarter. Capital Equipment declined 20%, with recurring revenue rising 2% in the period versus the prior year. The Dental segment rose 65.1% on a reported basis, due to the acquisition of Hu-Friedy and increased 1.8% on an organic basis, mainly driven by the recovery of dental procedures, combined with increased demand for infection prevention products in the dental market, inclusive of PPE and disinfectant chemistries. Life Sciences fell 7.3% on an organic basis, mainly due to lower portable reverse osmosis machine sales. This decline was mainly driven by demand in the back half of fiscal year 2020, as customers requested these units during the height of the pandemic. In the Dialysis segment, the company saw organic growth of 8.3%.

On the other hand, CMD has announced a new long-term partnership with Censis Technologies to combine Cantel’s leading infection prevention endoscope reprocessing workflow portfolio with the surgical asset management and instrument tracking solutions from Censis.