Enovis Corporation (ENOV, Financial) reported a strong start to the financial year with first-quarter revenues hitting $559 million, slightly surpassing the anticipated $558.9 million. The CEO highlighted that this success indicates the company's robust operational framework and the team's discipline amid global challenges. Moving ahead, Enovis aims to sustain growth by adhering to strategic execution, investing strategically, and maintaining a steady pace of impactful product introductions across its portfolio.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Enovis Corp (ENOV, Financial) is $65.13 with a high estimate of $75.00 and a low estimate of $55.00. The average target implies an upside of 90.20% from the current price of $34.24. More detailed estimate data can be found on the Enovis Corp (ENOV) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Enovis Corp's (ENOV, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Enovis Corp (ENOV, Financial) in one year is $72.65, suggesting a upside of 112.18% from the current price of $34.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Enovis Corp (ENOV) Summary page.
ENOV Key Business Developments
Release Date: February 26, 2025
- Revenue: Fourth quarter sales of $561 million, up 23% year-over-year and 7% on a constant currency basis.
- Adjusted EBITDA Margin: Expanded by 210 basis points to 20.1% in the fourth quarter.
- Adjusted Gross Margin: Increased by 150 basis points to 60.1% year-over-year in the fourth quarter.
- Recon Revenue Growth: 59% reported global revenue growth; 10% growth on a comparable basis.
- US Recon Growth: 7% growth, including 10% in US Extremities and 8% in Hip Knees.
- International Growth: 13% growth in the fourth quarter.
- P&R Growth: 3% growth reflecting a stable market environment.
- Adjusted Earnings Per Share: $0.98, an increase of 24% versus the prior year.
- Interest Expense: $9 million for the quarter, up from $4 million in 2023.
- Effective Tax Rate: 21% in the fourth quarter, compared to 22% last year.
- Goodwill Impairment: Noncash technical impairment of $645 million due to a decrease in share price and market capitalization.
- 2025 Revenue Guidance: Expected range of $2.19 billion to $2.22 billion.
- 2025 Adjusted EBITDA Guidance: Expected range of $405 million to $415 million.
- 2025 Adjusted EPS Guidance: Forecasted range of $3.10 to $3.25.
- 2025 Q1 Revenue Guidance: Expected range of $555 million to $563 million.
- 2025 Q1 Adjusted EBITDA Guidance: Expected range of $97 million to $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Enovis Corp (ENOV, Financial) reported a 23% growth in the fourth quarter of 2024, with a 7% increase on a constant currency comparable basis.
- The company successfully integrated Lima, exceeding all year one goals and contributing to a 210 basis point expansion in adjusted EBITDA margins.
- Recon segment delivered 59% reported global revenue growth, with double-digit growth in both Hip Knee and Extremities segments.
- Fourth quarter adjusted gross margin improved by 150 basis points year-over-year, driven by favorable segment mix and Lima cost initiatives.
- Enovis Corp (ENOV) expects strong execution in 2025 with projected revenues between $2.19 billion to $2.22 billion, and adjusted EBITDA in the range of $405 million to $415 million.
Negative Points
- Enovis Corp (ENOV) recorded a noncash technical impairment of goodwill amounting to $645 million due to a sustained decrease in share price and market capitalization.
- Interest expense increased to $9 million in the fourth quarter compared to $4 million in 2023.
- The company anticipates negative currency headwinds of approximately 1% to 2% in 2025.
- Potential tariff impacts from China and Mexico could represent a $3 million to $4 million exposure per month, which is not included in the 2025 guidance.
- The company is still managing integration headwinds from the Lima acquisition, which affected US recon growth.
