CONMED Corporation (CNMD - Free Report) reported second-quarter 2018 adjusted earnings per share of 46 cents, which beat the Zacks Consensus Estimate by a penny. Earnings also improved 12.2% from the year-ago quarter’s tally.
The New York-based medical products manufacturer reported revenues of $212.8 million, up 7.9% on a year-over-year basis and 7.4% at constant currency (cc). Notably, the figure surpassed the Zacks Consensus Estimate of $206.9 million.
In the past year, shares of CONMED have rallied 55.9% compared with the industry’s return of 7.6%.
The stock carries a Zacks Rank #3 (Hold).
Revenues at the segment totaled $110.1 million, up 4.3% from the year-ago quarter and 2.8% at cc.
Domestically, Orthopedics revenues inched up 2.1% from the prior-year quarter, while international sales increased 3.2%.
This segment’s revenues totaled $102.7 million, up 12.1% year over year. At cc, revenues rose 12.9%. Per management, growth was driven by a strong product portfolio.
Domestically, General Surgery sales shot up 18.9% year over year, while international sales increased 2.3%.
Sales by Geography
Sales in the United States grossed $109.7 million, up 9.7% year over year. International sales climbed 6.1% to $103.1 million.
Gross profit in the quarter totaled $116.3 million, up 11.1% year over year. Adjusted gross margin was 54.6%, improving 150 basis points (bps).
Operating income came in at $16.7 million, up 30.5% year over year. Operating margin was 7.8%, up 130 bps in the quarter.
CONMED raised its sales guidance. The company now expects 2018 revenues in the range of 6-7%, compared to the previous range of 4.5-5.5%. The Zacks Consensus Estimate is pegged at $841.7 million.
Full-year earnings are expected between $2.15 and $2.20, reflecting growth of 14-16%. The Zacks Consensus Estimate stands at $2.17, within the guided range.
CONMED wrapped the second quarter on a solid note, with earnings and revenues beating the consensus mark. Strong performances across Orthopedic and General surgery units and the company’s product portfolio are encouraging. Significant expansion in the gross and operating margins buoys optimism. The company has invested significantly in R&D, which reflects focus on innovation. A raised full-year guidance also paints a bright picture.
On the flip side, CONMED operates in a highly competitive environment, especially with respect to the General Surgery business. The company’s high long-term debt is a concern.
Q2 Earnings of MedTech Majors at a Glance
A few better-ranked stocks in the broader medical space, which reported solid earnings this season, are Thermo Fisher Scientific Inc. (TMO - Free Report) , Intuitive Surgical, Inc (ISRG - Free Report) and Illumina, Inc (ILMN - Free Report) .
While Intuitive Surgical and Illumina sport Zacks Rank #1 (Strong Buy), Stryker carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical reported adjusted earnings of $2.76 per share in the second quarter of 2018, which beat the Zacks Consensus Estimate of $2.48. Adjusted earnings improved 38% year over year.
Thermo Fisher reported adjusted earnings per share of $2.75, which beat the Zacks Consensus Estimate by 4.6%.
Illumina reported adjusted earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.11.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>