-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Medline delivered mixed Q1 results with net sales of $7.4B (+10.7%) and organic growth of 10.1%, but adjusted EPS of $0.16 fell well below the $0.29 consensus. Gross margin fell 250bps Y/Y to 25.0% due to tariff impacts and higher costs, while adjusted EBITDA declined 10.6% to $776M with margin falling to 10.6% from 13.1% prior-year. The Medline Brand segment generated $3.5B (+6.2%) in sales, with EBITDA margin declining to 22.1% from 25.4%. Supply Chain Solutions showed stronger growth at $3.9B (+15.0%) though margins compressed. FCF of $316M demonstrated strong cash generation despite growth investments in manufacturing capabilities, in our view. Management raised full-year organic sales guidance to 8.5%-9.5% from 8%-9%, while maintaining adjusted EBITDA guidance of $3.5B-$3.6B, suggesting expectations for margin recovery. We believe operational efficiencies should materialize as MDLN benefits from new customer signings and growth among existing customers, though tariff pressures remain a near-term headwind.