CONMED Corporation (CNMD - Free Report) posted third-quarter 2018 adjusted earnings per share of 46 cents, which beat the Zacks Consensus Estimate by a penny. Also, the figure improved 9.5% from the year-ago quarter’s tally.
The New York-based medical products manufacturer posted revenues of $202.3 million, up 6.4% on a year-over-year basis and 7.4% at constant currency (cc). Notably, the figure surpassed the Zacks Consensus Estimate of $198.9 million.
The stock carries a Zacks Rank #3 (Hold).
Revenues in the segment totaled $102.9 million, up 4.4% from the year-ago quarter's tally.
Domestically, Orthopedics revenues increased 5.7% from the prior-year quarter's level, while international sales increased 5.8%.
Revenues in the segment totaled $99.4 million, up 8.6% year over year. Per management, growth was driven by a strong product portfolio.
Domestically, General Surgery sales improved 15.5% year over year and international sales increased 1.8%.
CONMED Corporation Price and Consensus
Sales by Geography
Sales in the United States grossed $323.4 million, up 8.6% year over year. International sales climbed 6.4% to $293.8 million.
Gross profit in the quarter totaled $110.6 million, up 7.9% year over year. Adjusted gross margin was 54.7%, improving 80 basis points (bps).
Operating income came in at $16.7 million, down 14.5% year over year. Operating margin was 5.7%, up 140 bps year over year.
CONMED raised sales guidance for 2018. The company expects 2018 revenues in the range of 6.5-7% compared with the previous range of 6-7%. The Zacks Consensus Estimate is pegged at $843.8 million.
Full-year earnings are expected between $2.15 and $2.20, reflecting growth of 14-16%. The Zacks Consensus Estimate is pegged at $2.17, within the guided range.
CONMED exited the third quarter on a solid note, with earnings and revenues beating the consensus mark. A raised sales guidance for 2018 is a positive.
Strong performances in the 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 guidance also paints a bright picture.
On the flip side, the company operates in a highly competitive environment, especially with respect to the General Surgery business. The company’s high long-term debt is a concern. Lower healthcare spending owing to foreign exchange volatility is a headwind.
Q3 Earnings of MedTech Majors at a Glance
A few better-ranked stocks in the broader medical space, which reported solid earnings this season are, Stryker Corp. (SYK - Free Report) , Intuitive Surgical, Inc. (ISRG - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical reported adjusted earnings of $2.83 per share in the third quarter of 2018, which beat the Zacks Consensus Estimate of $2.65. Adjusted earnings improved 1.8% year over year.
Stryker delivered third-quarter 2018 adjusted earnings per share (EPS) of $1.69, which beat the Zacks Consensus Estimate of $1.68. Earnings improved 11.2% year over year, within the company’s guidance.
Merit Medical reported third-quarter 2018 adjusted EPS of 47 cents, beating the Zacks Consensus Estimate of 42 cents. Adjusted earnings improved 46.9% from the year-ago quarter’s tally.
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