UK's ConvaTec meets prelim H1 revenue estimates
UK's ConvaTec meets prelim H1 revenue estimates
Overview
UK medical products maker's H1 revenue rose 4.4%, meeting analyst expectations
Company's H1 EBIT missed analyst expectations
ConvaTec announced $200 mln share buyback to complete by end 2026
Outlook
ConvaTec narrows FY26 organic revenue growth ex-InnovaMatrix to 5.5-6.5% (prior 5-7%)
Company maintains FY26 adjusted operating margin guidance at ≥23.0%
ConvaTec expects double-digit adjusted EPS growth in FY26
Result Drivers
INNOVAMATRIX DECLINE - Significant drop in InnovaMatrix sales after US reimbursement changes led to a 94% revenue decline and $69 mln impairment
NEW PRODUCT LAUNCHES - Broad-based organic revenue growth was driven by new products, with over half of organic growth from launches in the last 3 years
COST EFFICIENCY - Operating margin benefited from cost efficiency progress, including productivity initiatives and expanded automation
Company press release: ID:nRSD0911Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Meet | $1.23 bln | $1.23 bln (3 Analysts) |
H1 EBIT | Miss | $115 mln | $262.56 mln (3 Analysts) |
H1 Adjusted EBIT Margin |
| 21.20% |
|
H1 EBIT Margin |
| 9.30% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"
Wall Street's median 12-month price target for ConvaTec Group PLC is GBp305.00, about 35.3% above its August 3 closing price of GBp225.40
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)