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CONMED (CNMD) Earnings and Revenues Surpass Estimates in Q3
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CONMED Corporation (CNMD - Free Report) reported third-quarter 2020 adjusted earnings per share (EPS) of 88 cents, up from year-ago quarter’s adjusted EPS by 41.9%. Also, the bottom line beat the Zacks Consensus Estimate of 25 cents by a massive 252%.
The New York-based medical products manufacturer reported revenues of $237.8 million, up 1.8% year over year, both on a reported basis and at constant currency (cc). Also, the top line beat the Zacks Consensus Estimate by 16.1%.
Segment Details
Orthopedic Surgery
Revenues at the segment totaled $102.2 million, down 7.4% from the year-ago quarter.
On the domestic and international front, Orthopedics revenues fell 8.5% and 6.7%, respectively, from the prior-year levels.
General Surgery
Revenues at the segment amounted to $135.6 million, up 10% year over year.
Domestically, General Surgery sales rose 11.3% year over year and international sales grew 7.3%.
Sales by Geography
In the reported quarter, sales in the United States amounted to $134.2 million, up 4.7% year over year. International sales declined 1.7% to $103.6 million.
Margins
Gross profit in the quarter totaled $133.7 million, up 2.8% year over year. Per management, gross margin was 56.2%, expanding 51 bps.
Adjusted operating profit came in at $29.4 million, up 40.3%. Adjusted operating margin came at 12.4%, up 339 bps.
CONMED Corporation Price, Consensus and EPS Surprise
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 third quarter on a strong note. Moreover, the company witnessed sustained favorable momentum within its business in spite of the ongoing geographic variability in procedure volumes due to pandemic-induced disruptions. Also, the company’s General Surgery unit witnessed growth in revenues in the quarter. Expansion of both margins and growth in overall domestic sales are impressive as well.
However, the company witnessed a decline in its Orthopedic Surgery unit. Decline of overall international sales in the quarter is worrisome. Additionally, CONMED operates in a highly-competitive environment, especially with respect to the General Surgery business.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
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CONMED (CNMD) Earnings and Revenues Surpass Estimates in Q3
CONMED Corporation (CNMD - Free Report) reported third-quarter 2020 adjusted earnings per share (EPS) of 88 cents, up from year-ago quarter’s adjusted EPS by 41.9%. Also, the bottom line beat the Zacks Consensus Estimate of 25 cents by a massive 252%.
The New York-based medical products manufacturer reported revenues of $237.8 million, up 1.8% year over year, both on a reported basis and at constant currency (cc). Also, the top line beat the Zacks Consensus Estimate by 16.1%.
Segment Details
Orthopedic Surgery
Revenues at the segment totaled $102.2 million, down 7.4% from the year-ago quarter.
On the domestic and international front, Orthopedics revenues fell 8.5% and 6.7%, respectively, from the prior-year levels.
General Surgery
Revenues at the segment amounted to $135.6 million, up 10% year over year.
Domestically, General Surgery sales rose 11.3% year over year and international sales grew 7.3%.
Sales by Geography
In the reported quarter, sales in the United States amounted to $134.2 million, up 4.7% year over year. International sales declined 1.7% to $103.6 million.
Margins
Gross profit in the quarter totaled $133.7 million, up 2.8% year over year. Per management, gross margin was 56.2%, expanding 51 bps.
Adjusted operating profit came in at $29.4 million, up 40.3%. Adjusted operating margin came at 12.4%, up 339 bps.
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 third quarter on a strong note. Moreover, the company witnessed sustained favorable momentum within its business in spite of the ongoing geographic variability in procedure volumes due to pandemic-induced disruptions. Also, the company’s General Surgery unit witnessed growth in revenues in the quarter. Expansion of both margins and growth in overall domestic sales are impressive as well.
However, the company witnessed a decline in its Orthopedic Surgery unit. Decline of overall international sales in the quarter is worrisome. Additionally, CONMED operates in a highly-competitive environment, especially with respect to the General Surgery business.
Zacks Rank
CONMED currently has a Zacks Rank #4 (Sell).
Earnings of MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>