How did UFPT's Q3 2024 earnings surprise investors?

UFP Technologies' (NASDAQ: UFPT) Q3 2024 earnings report exceeded investor expectations in several key financial metrics, reflecting the company's continued growth and operational efficiency:

1. **Revenue Growth**: The company's total revenue for Q3 2024 was $145.17 million. This marked a significant year-over-year increase, up from $100.78 million in Q3 2023. This growth was particularly notable, as it surpassed market expectations and represented a 44% increase from the previous year's same quarter.
2. **Net Income Increase**: UFP Technologies reported a net income of $16.36 million for Q3 2024. This was a 40% increase from the $11.69 million reported in Q3 2023. This substantial rise in net income further underscored the company's strong financial performance.
3. **Profit Margin Improvement**: The company's profit margin for Q3 2024 was 11%, which was in line with the previous quarter's margin. This consistency in profit margin indicates efficient management and a strong profitability trend.
4. **Earnings Per Share (EPS) Growth**: The EPS for Q3 2024 was $2.13, an increase from the $1.53 reported in Q3 2023. This indicates that not only was the company profitable, but it was also generating more earnings per share for investors.
5. **Operational Efficiency**: UFP Technologies demonstrated improved operational efficiency with a decrease in adjusted SG&A as a percentage of sales. This strategic management led to increased operating income, which grew by 64.6% to $24.8 million for the three-month period ended September 30, 2024, and by 30.5% to $58.6 million for the nine-month period.

Overall, UFP Technologies' Q3 2024 earnings report reflected robust growth in both revenue and profitability, surpassing investor expectations. The company's strategic expansions and operational efficiencies have contributed to its strong financial performance.