We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Conmed (CNMD) Down 3.9% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Conmed (CNMD - 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Conmed (CNMD) Down 3.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Conmed (CNMD - 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.