Covalon Technologies Ltd. (OTC:CVALF)

Covalon Technologies Ltd.  (COV).V (OTC:CVALF) ($2.02; $49.8M market cap) reported Q3 2024 results: (financial in CAD)

• Sales of $9.2 million vs $6.0 million in the prior year
• EPS of $0.06 vs a loss of $0.02 .

“We delivered a very successful Q3 – solid performance on growth, margins and operating expenses all led to another strong quarter of profitability,” said Brent Ashton, Covalon’s Chief Executive Officer. “Our results clearly demonstrate the progress that the One Covalon team is making against our key priorities, and that the foundational work to strengthen Covalon is delivering value to our customers, stakeholders, and investors.”

We were on the conference call, and while management did not provide any specific guidance, the tone suggested that Q4 should continue the growth pattern seen in the last several quarters. After a string of quarterly losses, this marks the second consecutive quarter of strong profitability, as a new CEO’s plan to focus on the company’s highest growth and margin areas of the business seems to be inflecting. We are in the process of scheduling a Fireside Chat Skull Session with the CEO.

Covalon is a patient-driven medical device company that provides innovative and cost-effective healthcare solutions for advanced wound care, infection control, and medical device coatings.