CONMED Corporation (CNMD - Free Report) reported second-quarter 2020 adjusted loss per share of 7 cents against year-ago quarter’s adjusted earnings per share (EPS) of 56 cents. However, the bottom line was narrower than the Zacks Consensus Estimate of a loss of $1.02 per share.
The New York-based medical products manufacturer reported revenues of $157.8 million, down 33.8% on a year-over-year basis and 32.6% at constant currency (cc). However, the top line beat the Zacks Consensus Estimate by 22.2%.
Segment Details
Orthopedic Surgery
Revenues at the segment totaled $60.5 million, down 47.7% from the year-ago quarter.
On the domestic and international front, Orthopedics revenues fell 50.6% and 46%, respectively, from the prior-year levels.
General Surgery
Revenues at the segment amounted to $97.3 million, down 20.6% year over year.
Domestically, General Surgery sales fell 22.9% year over year and international sales dropped 15.3%.
Sales by Geography
In the reported quarter, sales in the United States amounted to $87.4 million, down 32.2% year over year. International sales declined 35.6% to $70.4 million.
Margins
Gross profit in the quarter totaled $71.9 million, down 45.2% year over year. Per management, gross margin was 45.6%, contracting 947 bps.
Operating loss came in at $21.2 million against operating profit of $18.7 million in the year-ago period.
2020 Guidance
Due to the continued uncertainty surrounding the extent and magnitude of the COVID-19 pandemic, management is unable to issue any guidance at this moment.
Wrapping Up
CONMED exited the second quarter on a mixed note. The month-over-month improvement in revenues, profitability and cash flow over the course of the quarter is encouraging. However, the company’s core units — General Surgery and Orthopedic Surgery—witnessed decline in revenues in the quarter. Contraction of gross margin is also a concern.
The company also witnessed a decline in both domestic and international sales in the quarter. Additionally, CONMED operates in a highly competitive environment, especially with respect to the General Surgery business.
Zacks Rank
CONMED currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and Laboratory Corporation of America Holdings (LH - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
LabCorp reported second-quarter 2020 EPS of $2.57, outpacing the Zacks Consensus Estimate of 78 cents. Revenues of $2.77 billion surpassed the consensus estimate by 14.3%.
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CONMED Corporation (CNMD - Free Report) reported second-quarter 2020 adjusted loss per share of 7 cents against year-ago quarter’s adjusted earnings per share (EPS) of 56 cents. However, the bottom line was narrower than the Zacks Consensus Estimate of a loss of $1.02 per share.
The New York-based medical products manufacturer reported revenues of $157.8 million, down 33.8% on a year-over-year basis and 32.6% at constant currency (cc). However, the top line beat the Zacks Consensus Estimate by 22.2%.
Segment Details
Orthopedic Surgery
Revenues at the segment totaled $60.5 million, down 47.7% from the year-ago quarter.
On the domestic and international front, Orthopedics revenues fell 50.6% and 46%, respectively, from the prior-year levels.
General Surgery
Revenues at the segment amounted to $97.3 million, down 20.6% year over year.
Domestically, General Surgery sales fell 22.9% year over year and international sales dropped 15.3%.
Sales by Geography
In the reported quarter, sales in the United States amounted to $87.4 million, down 32.2% year over year. International sales declined 35.6% to $70.4 million.
Margins
Gross profit in the quarter totaled $71.9 million, down 45.2% year over year. Per management, gross margin was 45.6%, contracting 947 bps.
Operating loss came in at $21.2 million against operating profit of $18.7 million in the year-ago period.
2020 Guidance
Due to the continued uncertainty surrounding the extent and magnitude of the COVID-19 pandemic, management is unable to issue any guidance at this moment.
Wrapping Up
CONMED exited the second quarter on a mixed note. The month-over-month improvement in revenues, profitability and cash flow over the course of the quarter is encouraging. However, the company’s core units — General Surgery and Orthopedic Surgery—witnessed decline in revenues in the quarter. Contraction of gross margin is also a concern.
The company also witnessed a decline in both domestic and international sales in the quarter. Additionally, CONMED operates in a highly competitive environment, especially with respect to the General Surgery business.
Zacks Rank
CONMED currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. (TMO - Free Report) , PerkinElmer, Inc. and Laboratory Corporation of America Holdings (LH - Free Report) , each carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.
PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.
LabCorp reported second-quarter 2020 EPS of $2.57, outpacing the Zacks Consensus Estimate of 78 cents. Revenues of $2.77 billion surpassed the consensus estimate by 14.3%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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