UFP Technologies (NASDAQ:UFPT) Reports Upbeat Q1, Stock Soars
Is now the time to buy UFP Technologies? Find out in our full research report.
UFP Technologies (UFPT) Q1 CY2025 Highlights:
Revenue: $148.1 million vs analyst estimates of $139.9 million (41.1% year-on-year growth, 5.9% beat)
Adjusted EPS: $2.47 vs analyst estimates of $2.01 (22.9% beat)
Adjusted EBITDA: $30.24 million vs analyst estimates of $28.26 million (20.4% margin, 7% beat)
Operating Margin: 15.6%, in line with the same quarter last year
Market Capitalization: $1.52 billion
'I am very pleased with our first quarter results and continued progress on a number of key strategic fronts,' said R. Jeffrey Bailly, Chairman & CEO.
Company Overview
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ:UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Sales Growth
A company's long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, UFP Technologies grew its sales at an excellent 24.2% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.
UFP Technologies Quarterly Revenue
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. UFP Technologies's annualized revenue growth of 20% over the last two years is below its five-year trend, but we still think the results suggest healthy demand.
UFP Technologies Year-On-Year Revenue Growth
This quarter, UFP Technologies reported magnificent year-on-year revenue growth of 41.1%, and its $148.1 million of revenue beat Wall Street's estimates by 5.9%.
Looking ahead, sell-side analysts expect revenue to grow 9.1% over the next 12 months, a deceleration versus the last two years. Still, this projection is admirable and implies the market is baking in success for its products and services.
Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.
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