Strong Buy, target $18.40. Aggressive Growth Zacks #1 rated

Oct 20, 2009 (Zacks.com via COMTEX) -- Cantel Medical Corp (CMN) posted yet another earnings surprise with a 65% increase in net income.

Company Description

Cantel makes medical products to prevent and control infections. The products are sold globally and range from water purification to disposable items like masks, wipes, and other products.

Net Income Up 65%

On Oct 9 the company reported fourth-quarter results that included a 65% jump in net income, to $4.3 million. Earnings per share came in at 26 cents, 4 cents higher than the Zacks Consensus Estimate and 10 cents higher than the same period last year.

A 4% rise in sales, to over $64 million, drove earnings higher. Cantel's full-year earnings were up 79% to 94 cents, almost double last year's 53 cents.

Fighting Swine Flu

Cantel sells a mask that is specially treated to fight infections, including seasonal flu and the H1N1 virus. The mask is treated with a special agent that breaks down the flu and other viruses.

Rising Estimates

Over the past few weeks, the average forecast for full-year 2010 rose 10 cents, to $1.03. Next year's estimates are averaging $1.13, up 6 cents. This would show year-over-year growth of 10% and 9%, respectively.

The Chart

Below you can see that Cantel has a good recent history with earnings reports. After several misses a few years ago, the company has gone on to beat estimates in each of the past 6 quarters.