UFP Technologies (UFPT) rises after Q1 profit beat, medical sales growth

UFP Technologies (UFPT) shares rose after the company reported first-quarter results that met Wall Street revenue expectations and topped adjusted profitability estimates, supported by growth in medical products. CEO Jeff Bailly said revenue grew 4.1% in the quarter, while medical sales rose 5.9%, led by robotic surgery, patient surfaces and interventional segments. Gains offset weakness in nonmedical markets, including automotive, as the company continues shifting its business mix toward medical applications. Management cited the ramp-up of four new program launches as a key growth driver but noted start-up costs, inventory issues and labor inefficiencies weighed on operations. Investors are watching the contribution from the new medical programs, expanded production capacity in the Dominican Republic, early Asia-Pacific plans, backlog reduction at AJR and potential acquisition activity. UFPT recently traded at $230.53, up from $192.55 before the earnings release.