It has been about a month since the last earnings report for Conmed (CNMD Quick QuoteCNMD - Free Report) . Shares have added about 14% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Conmed due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

CONMED Q4 Earnings Beat Estimates, Revenues Miss

CONMED Corporation reported fourth-quarter 2021 adjusted earnings per share of $1.07, which surpassed the Zacks Consensus Estimate by 1.9%. The bottom line rose 27.4% from the year-ago quarter.

GAAP earnings per share for the quarter was 75 cents, compared with the year-ago quarter’s figure of 81 cents.

For full-year 2021, the company reported adjusted EPS of $3.21, which beat the consensus mark by 0.6%. The figure improved 47.2% from the year-ago number.

Revenues in Detail

CONMED’s fourth-quarter revenues were $273.9 million, up 8.4% year over year. However, the top line missed the Zacks Consensus Estimate by 1.3%.

At constant exchange rate (CER), revenues improved 9.1%.

For full-year 2021, the company reported revenues of $1.01 billion, up 17.2% from the previous year. At CER, revenues improved 16.3%.

Segment Details

Revenues at the Orthopedic Surgery segment totaled $117.6 million, up 4.3% from the year-ago quarter on a reported basis. At CER, revenues improved 5.2%.

Orthopedics revenues rose 0.7% on a reported basis on the domestic front, while improving 6.5% (up 7.9% at CER) from the prior-year levels on the international front.

Revenues at the General Surgery segment amounted to $156.4 million, up 11.6% year over year on a reported basis and 12.2% at CER.

Domestically, General Surgery sales increased 6.8% year over year, while international sales advanced 23.4% on a reported basis (up 25.3% at CER).

Sales by Geography

In the reported quarter, sales in the United States amounted to $148.6 million, up 5% year over year. International sales were $125.4 million, up 12.7% year over year on a reported basis and 14.3% at CER.

Margins

In the quarter under review, CONMED’s gross profit rose 15% to $155.9 million. Gross margin expanded by 330 basis points (bps) to 56.9%.

Selling & administrative expenses increased 8.3% to $107.3 million. Research and development expenses declined 3% year over year to $11.4 million.

Operating profit totaled $37.2 million, reflecting an improvement of 50.7% from the prior-year quarter. Operating margin expanded by 170 bps to 13.6%.

2022 Guidance

CONMED projects full-year 2022 revenues in the range of $1.08 billion to $1.13 billion. The Zacks Consensus Estimate is currently pegged at $1.11 billion.

Adjusted earnings per share for the full year is now expected to be $3.60-$3.85. The Zacks Consensus Estimate is currently pegged at $3.70.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -16.89% due to these changes.

VGM Scores

At this time, Conmed has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Conmed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.