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CONMED (CNMD) Q2 Loss Narrower Than Expected, Revenues Top

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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.


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.

CONMED Corporation Price, Consensus and EPS Surprise


CONMED Corporation Price, Consensus and EPS Surprise

CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation Quote

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. (PKI - Free Report) 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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