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%.
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.
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.
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.
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.
CONMED currently has a Zacks Rank #3 (Hold).
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%.
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 >>