A month has gone by since the last earnings report for Conmed (CNMD Quick QuoteCNMD - Free Report) . Shares have lost about 3.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Conmed due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

CONMED Q1 Earnings and Revenues Beat Estimates

CONMED Corporation  reported first-quarter 2021 adjusted earnings per share  of 63 cents, which beat the Zacks Consensus Estimate of 43 cents by 46.5%. Also, the bottom line rose 23.5% from the year-ago quarter.

Revenue Details

The New York-based medical products manufacturer reported revenues of $232.7 million, up 8.7% year over year on a reported basis and 7.2% in constant currency (cc). The top line also beat the Zacks Consensus Estimate by 7%.

Segment Details

Orthopedic Surgery

Revenues at the segment totaled $107.2 million, up 7.9% from the year-ago quarter.
On the domestic and international front, Orthopedics revenues rose 0.2% and 12.5%, respectively, from the prior-year levels.

General Surgery

Revenues at the segment amounted to $125.5 million, up 9.4% year over year.
Domestically, General Surgery sales rose 6.1% year over year, while international sales rose 17.6%.

Sales by Geography

In the reported quarter, sales in the United States amounted to $123.9 million, up 4.3% year over year. International sales rose 14.3% to $108.8 million.

Margins

Gross profit in the quarter totaled $128.4 million, up 7.8% year over year. Per management, gross margin was 55.2%, contracting 47 bps.

Operating costs came in at $108.4 million, up 2.2%

Operating profit amounted to $20.1 million, up 52.5%. Operating margin came in at 8.6%, up 248 basis points (bps).

2021 Guidance

Revenues are projected in the range of $1-$1.03 billion compared with its previous guidance between $975 million and $1.02 billion. The Zacks Consensus Estimate is pegged at 999.4 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

VGM Scores

At this time, Conmed has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Conmed has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.