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CONMED Corporation (CNMD - Free Report) delivered adjusted earnings per share (EPS) of $0.79 in first-quarter 2024, which beat the Zacks Consensus Estimate of $0.74 by 6.8%. The bottom line improved 19.7% from the year-ago quarter’s level.
GAAP EPS for the quarter was 63 cents compared with 6 cents per share in the year-ago period.
The company’s shares have lost 25.8% in the past six months against the industry’s rise of 10.0%. The broader S&P 500 Index has gained 23% in the same time frame.
Image Source: Zacks Investment Research
Revenues in Detail
CONMED’s revenues totaled $312.3 million, up 5.7% year over year. The top line beat the Zacks Consensus Estimate by 1.7%. At constant exchange rate (CER), revenues increased 5.9%.
CNMD’s first-quarter sales were driven by strong growth in the United States as well as international markets. The first quarter witnessed steady surgical volumes. The performance of CONMED’s BioBrace in the foot and ankle space seemed encouraging.
Segmental Details
Revenues in the Orthopedic Surgery segment totaled $134.9 million, up 2.8% from the year-ago quarter’s level on a reported basis. At CER, revenues increased 3.0%.
Sales improved 10.6% on a reported basis on the domestic front. It decreased 1.8% (-1.6% at CER) from the prior-year quarter’s level on the international front.
Revenues in the General Surgery segment amounted to $177.4 million, up 8% year over year on a reported basis and 8.2% at CER. Domestically, the figure increased 5.7% year over year. International sales improved 13.3% on a reported basis (14.1% at CER).
Sales by Geography
Sales in the United States totaled $176.4 million, up 7.2% year over year. International sales amounted to $135.9 million, up 3.8% year over year on a reported basis and 4.2% at CER.
Margins
CONMED’s gross profit improved 10.7% to $171.9 million. The gross margin improved 160 basis points to 55.1%.
Selling & administrative expenses decreased 5.2% to $123.4 million. Research and development expenses rose 8.4% year over year to $13.6 million.
The company recorded an operating income of $35 million compared with $12.7 million in the prior-year quarter.
2024 Guidance
Conmed has revised its revenue and earnings guidance for 2024 based on incremental foreign currency headwinds.
The company expects revenues between $1.33 billion and $1.355 billion for 2024 compared with the prior guidance of $1.340 billion-$1.365 billion. The Zacks Consensus Estimate is currently pegged at $1.35 billion.
Adjusted EPS is expected to be in the range of $4.25-$4.35 compared with the prior guided range of $4.30-$4.40. The Zacks Consensus Estimate is currently pegged at $4.34.
Our Take
CONMED exited the first quarter of 2024 on a good note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The first quarter witnessed improvement in supply-chain issues.
A favorable product mix supported gross margin improvement, which was partially offset by continued challenges in the International Orthopedic business. CONMED expects a gross margin of 60% by 2025.
CONMED Corporation Price, Consensus and EPS Surprise
Some better-ranked stocks in the broader medical space are IDEXX Laboratories, Inc. (IDXX - Free Report) , Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, and Ecolab Inc. (ECL - Free Report) .
IDEXX, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.6%. IDXX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX’s shares have gained 2.9% compared with the industry’s 3.9% rise in the past year.
BD, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.4%. BDX’s earnings surpassed estimates in three of the trailing four quarters and broke even once, with the average being 4.6%.
BD has lost 11.1% against the industry’s 4.9% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.
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CONMED (CNMD) Q1 Earnings & Revenues Surpass Estimates
CONMED Corporation (CNMD - Free Report) delivered adjusted earnings per share (EPS) of $0.79 in first-quarter 2024, which beat the Zacks Consensus Estimate of $0.74 by 6.8%. The bottom line improved 19.7% from the year-ago quarter’s level.
GAAP EPS for the quarter was 63 cents compared with 6 cents per share in the year-ago period.
The company’s shares have lost 25.8% in the past six months against the industry’s rise of 10.0%. The broader S&P 500 Index has gained 23% in the same time frame.
Image Source: Zacks Investment Research
Revenues in Detail
CONMED’s revenues totaled $312.3 million, up 5.7% year over year. The top line beat the Zacks Consensus Estimate by 1.7%. At constant exchange rate (CER), revenues increased 5.9%.
CNMD’s first-quarter sales were driven by strong growth in the United States as well as international markets. The first quarter witnessed steady surgical volumes. The performance of CONMED’s BioBrace in the foot and ankle space seemed encouraging.
Segmental Details
Revenues in the Orthopedic Surgery segment totaled $134.9 million, up 2.8% from the year-ago quarter’s level on a reported basis. At CER, revenues increased 3.0%.
Sales improved 10.6% on a reported basis on the domestic front. It decreased 1.8% (-1.6% at CER) from the prior-year quarter’s level on the international front.
Revenues in the General Surgery segment amounted to $177.4 million, up 8% year over year on a reported basis and 8.2% at CER. Domestically, the figure increased 5.7% year over year. International sales improved 13.3% on a reported basis (14.1% at CER).
Sales by Geography
Sales in the United States totaled $176.4 million, up 7.2% year over year. International sales amounted to $135.9 million, up 3.8% year over year on a reported basis and 4.2% at CER.
Margins
CONMED’s gross profit improved 10.7% to $171.9 million. The gross margin improved 160 basis points to 55.1%.
Selling & administrative expenses decreased 5.2% to $123.4 million. Research and development expenses rose 8.4% year over year to $13.6 million.
The company recorded an operating income of $35 million compared with $12.7 million in the prior-year quarter.
2024 Guidance
Conmed has revised its revenue and earnings guidance for 2024 based on incremental foreign currency headwinds.
The company expects revenues between $1.33 billion and $1.355 billion for 2024 compared with the prior guidance of $1.340 billion-$1.365 billion. The Zacks Consensus Estimate is currently pegged at $1.35 billion.
Adjusted EPS is expected to be in the range of $4.25-$4.35 compared with the prior guided range of $4.30-$4.40. The Zacks Consensus Estimate is currently pegged at $4.34.
Our Take
CONMED exited the first quarter of 2024 on a good note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The first quarter witnessed improvement in supply-chain issues.
A favorable product mix supported gross margin improvement, which was partially offset by continued challenges in the International Orthopedic business. CONMED expects a gross margin of 60% by 2025.
CONMED Corporation Price, Consensus and EPS Surprise
CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation Quote
Zacks Rank and Stocks to Consider
Currently, CNMD carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are IDEXX Laboratories, Inc. (IDXX - Free Report) , Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD, and Ecolab Inc. (ECL - Free Report) .
IDEXX, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.6%. IDXX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
IDEXX’s shares have gained 2.9% compared with the industry’s 3.9% rise in the past year.
BD, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.4%. BDX’s earnings surpassed estimates in three of the trailing four quarters and broke even once, with the average being 4.6%.
BD has lost 11.1% against the industry’s 4.9% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.