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Headquartered in Utica, NY, leading medical technology player, CONMED Corporation (CNMD - Free Report) reported first-quarter 2017 adjusted earnings of 38 cents per share, beating the Zacks Consensus Estimate by 4 cents. Also, earnings improved from 30 cents per share on a year-over-year basis, courtesy of strong revenues.
Revenues rose 3.0% to approximately $186.6 million, ahead of the Zacks Consensus Estimate of $180 million. Sales rose 3.7% on a constant currency basis (cc).
Stock Performance
Over the last three months, the stock added 10.85%, comparing favorably with the Zacks classified Medical/Dental-Supplies sub-industry’s rise of 5.93%. In fact, the current level is also higher than the S&P 500’s solid return of around 4.90% over the same time frame. Furthermore, a long-term expected earnings growth rate of 8.50% instills confidence in investors.
Revenue Details
In terms of product line, orthopedic surgery declined 0.7% on a year-over-year basis at cc. Sales at this segment totaled $103.8 million. The general surgery segment had a great quarter, registering a 9.7% increase at cc. General surgery organic sales increased to $82.8 million versus $75.9 million in the year-ago quarter.
In terms of product category, sales for single-use products increased 4.0% at cc to $149.8 million. Coming to the capital products, sales inched up 2.4% at cc to $36.8 million.
On the basis of geographies, CONMED witnessed a 3.5% jump in domestic revenues to $99.4 million. CONMED witnessed 3.9% growth in international markets to $87.2 million.
Balance Sheet
CONMED had a cash balance of $34.7 million at the end of first-quarter 2017, with $487.0 million in long-term debt. The inventory balance was $140.1 million at the end of the first quarter.
CONMED Corporation Price, Consensus and EPS Surprise
For the full year, CONMED expects sales growth in the band of 1% to 3% at cc. The company projects adjusted earnings per share in the range of $1.85 to $1.95.
Our Take
Foreign exchange movements have been impacting the company’s results over quite a few quarters. Furthermore, CONMED operates in a highly competitive environment which is likely to stifle top-line growth.
Declining sales in Orthopaedic surgery and surgical visualization is an added concern.
However, the stock holds a long-term expected earnings growth rate of 12%, instilling our confidence in the stock.
Stocks to Consider
Currently, CONMED has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical sector are Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Glaukos Corporation and Fluidigm sport a Zacks Rank #1 (Strong Buy), while Avinger has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock registered an impressive one-year return of 197%.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock added 11.4% over the last three months.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company delivered a positive earnings surprise of 27% last quarter.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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CONMED (CNMD) Q1 Earnings Surpass Estimates, Increase Y/Y
Headquartered in Utica, NY, leading medical technology player, CONMED Corporation (CNMD - Free Report) reported first-quarter 2017 adjusted earnings of 38 cents per share, beating the Zacks Consensus Estimate by 4 cents. Also, earnings improved from 30 cents per share on a year-over-year basis, courtesy of strong revenues.
Revenues rose 3.0% to approximately $186.6 million, ahead of the Zacks Consensus Estimate of $180 million. Sales rose 3.7% on a constant currency basis (cc).
Stock Performance
Over the last three months, the stock added 10.85%, comparing favorably with the Zacks classified Medical/Dental-Supplies sub-industry’s rise of 5.93%. In fact, the current level is also higher than the S&P 500’s solid return of around 4.90% over the same time frame. Furthermore, a long-term expected earnings growth rate of 8.50% instills confidence in investors.
Revenue Details
In terms of product line, orthopedic surgery declined 0.7% on a year-over-year basis at cc. Sales at this segment totaled $103.8 million. The general surgery segment had a great quarter, registering a 9.7% increase at cc. General surgery organic sales increased to $82.8 million versus $75.9 million in the year-ago quarter.
In terms of product category, sales for single-use products increased 4.0% at cc to $149.8 million. Coming to the capital products, sales inched up 2.4% at cc to $36.8 million.
On the basis of geographies, CONMED witnessed a 3.5% jump in domestic revenues to $99.4 million. CONMED witnessed 3.9% growth in international markets to $87.2 million.
Balance Sheet
CONMED had a cash balance of $34.7 million at the end of first-quarter 2017, with $487.0 million in long-term debt. The inventory balance was $140.1 million at the end of the first quarter.
CONMED Corporation Price, Consensus and EPS Surprise
CONMED Corporation Price, Consensus and EPS Surprise | CONMED Corporation Quote
Guidance
For the full year, CONMED expects sales growth in the band of 1% to 3% at cc. The company projects adjusted earnings per share in the range of $1.85 to $1.95.
Our Take
Foreign exchange movements have been impacting the company’s results over quite a few quarters. Furthermore, CONMED operates in a highly competitive environment which is likely to stifle top-line growth.
Declining sales in Orthopaedic surgery and surgical visualization is an added concern.
However, the stock holds a long-term expected earnings growth rate of 12%, instilling our confidence in the stock.
Stocks to Consider
Currently, CONMED has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical sector are Glaukos Corporation (GKOS - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Glaukos Corporation and Fluidigm sport a Zacks Rank #1 (Strong Buy), while Avinger has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock registered an impressive one-year return of 197%.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock added 11.4% over the last three months.
Avinger projects sales growth of 2.3% for the current year. Additionally, the company delivered a positive earnings surprise of 27% last quarter.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>