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Mar 31, 2020
UFP Technologies Q1 2020 Earnings Report
UFP Technologies reported modest gains in Q1 2020, with medical sales growth offsetting declines in non-medical markets amidst the COVID-19 pandemic.
Key Takeaways
UFP Technologies announced Q1 2020 results with a 2% increase in sales and a 4% increase in net income compared to Q1 2019. The company's medical sales grew significantly, offsetting declines in non-medical markets due to the COVID-19 pandemic.
UFP Technologies reported net income of $3.9 million, or $0.52 per diluted share, for Q1 2020.
Sales for Q1 2020 were $48.3 million, a 2% increase compared to Q1 2019 sales of $47.3 million.
Medical sales grew by 16%, offsetting declines in non-medical markets.
The company is taking steps to safeguard employees, including enhanced cleaning, temperature monitoring, and social distancing.
Revenue by Segment
Forward Guidance
UFP Technologies anticipates Q2 and likely Q3 will be adversely affected by the COVID-19 crisis but is focused on potential acquisitions and has increased raw materials and cash reserves to mitigate risk.
Positive Outlook
- The company's supply chain, primarily U.S.-based, has been meeting its needs.
- UFP Technologies has increased its raw materials and cash reserves to mitigate risk.
- The company has sharpened its focus on potential acquisitions.
- UFP Technologies has a solid balance sheet.
- All UFP factories are deemed essential businesses and are up and running.
Challenges Ahead
- Orders related to elective surgeries have slowed.
- Non-medical markets such as automotive and consumer have slowed dramatically.
- Attendance has slipped somewhat due to COVID-19.
- It is difficult to predict the net impact of the COVID-19 crisis.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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