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Why Is Conmed (CNMD) Up 13.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Conmed (CNMD - Free Report) . Shares have added about 13.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Conmed due for a pullback? 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 catalysts.
CONMED Corporation delivered adjusted earnings per share of 98 cents in the second quarter of 2024, which beat the Zacks Consensus Estimate of 92 cents by 6.5%. The bottom line improved 18.1% from the year-ago quarter’s level.
GAAP earnings per share for the quarter was 96 cents compared with 43 cents per share in the year-ago period.
Revenues in Detail
CONMED’s revenues totaled $332.1 million, up 4.5% year over year. The top line missed the Zacks Consensus Estimate by 0.7%. At constant exchange rate (CER), revenues increased 5.2%.
CNMD’s second-quarter sales were driven by strong growth in the United States as well as international markets. The second 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 $139.5 million, down 0.9% from the year-ago quarter’s level on a reported basis. At CER, revenues decreased 0.1%.
Sales declined 0.4% on a reported basis in the United States. Sales decreased 1.2% (up 0.1% at CER) from the prior-year quarter’s level in the international markets.
Revenues in the General Surgery segment amounted to $192.6 million, up 8.9% year over year on a reported basis and 9.4% at CER. U.S. sales increased 8.9% year over year. International sales improved 8.8% on a reported basis (10.5% at CER).
Sales by Geography
Sales in the United States totaled $185.4 million, up 6.1% year over year. International sales amounted to $146.7 million, up 2.6% year over year on a reported basis and 4% at CER.
Margins
CONMED’s gross profit improved 7.6% to $183.7 million. The gross margin improved 160 basis points to 55.3%.
Selling & administrative expenses decreased 5.5% to $122.5 million. Research and development expenses rose 3.9% year over year to $14.1 million.
The company recorded an operating income of $47.1 million compared with $27.4 million in the prior year quarter. The operating margin was 14.2%, up 560 basis points.
2024 Guidance Revised
CONMED lowered its revenue and earnings guidance for 2024 based on incremental foreign currency headwinds.
The company expects revenues between $1.305 billion and $1.315 billion for 2024 compared with the prior guidance of $1.330 billion and $1.355 billion. The Zacks Consensus Estimate is currently pegged at $1.34 billion.
Adjusted earnings per share is expected to be in the range of $3.95 to $4.02 compared with the prior guided range of $4.25 to $4.35. The Zacks Consensus Estimate is currently pegged at $4.30.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -15.09% due to these changes.
VGM Scores
At this time, Conmed has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Conmed has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Conmed belongs to the Zacks Medical - Dental Supplies industry. Another stock from the same industry, Align Technology (ALGN - Free Report) , has gained 3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Align Technology reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +2.6%. EPS of $2.41 for the same period compares with $2.22 a year ago.
Align Technology is expected to post earnings of $2.31 per share for the current quarter, representing a year-over-year change of +7.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Align Technology. Also, the stock has a VGM Score of F.
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Why Is Conmed (CNMD) Up 13.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Conmed (CNMD - Free Report) . Shares have added about 13.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Conmed due for a pullback? 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 catalysts.
CONMED Q2 Earnings Beat, Sales Rise Y/Y, '24 View Cut
CONMED Corporation delivered adjusted earnings per share of 98 cents in the second quarter of 2024, which beat the Zacks Consensus Estimate of 92 cents by 6.5%. The bottom line improved 18.1% from the year-ago quarter’s level.
GAAP earnings per share for the quarter was 96 cents compared with 43 cents per share in the year-ago period.
Revenues in Detail
CONMED’s revenues totaled $332.1 million, up 4.5% year over year. The top line missed the Zacks Consensus Estimate by 0.7%. At constant exchange rate (CER), revenues increased 5.2%.
CNMD’s second-quarter sales were driven by strong growth in the United States as well as international markets. The second 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 $139.5 million, down 0.9% from the year-ago quarter’s level on a reported basis. At CER, revenues decreased 0.1%.
Sales declined 0.4% on a reported basis in the United States. Sales decreased 1.2% (up 0.1% at CER) from the prior-year quarter’s level in the international markets.
Revenues in the General Surgery segment amounted to $192.6 million, up 8.9% year over year on a reported basis and 9.4% at CER. U.S. sales increased 8.9% year over year. International sales improved 8.8% on a reported basis (10.5% at CER).
Sales by Geography
Sales in the United States totaled $185.4 million, up 6.1% year over year. International sales amounted to $146.7 million, up 2.6% year over year on a reported basis and 4% at CER.
Margins
CONMED’s gross profit improved 7.6% to $183.7 million. The gross margin improved 160 basis points to 55.3%.
Selling & administrative expenses decreased 5.5% to $122.5 million. Research and development expenses rose 3.9% year over year to $14.1 million.
The company recorded an operating income of $47.1 million compared with $27.4 million in the prior year quarter. The operating margin was 14.2%, up 560 basis points.
2024 Guidance Revised
CONMED lowered its revenue and earnings guidance for 2024 based on incremental foreign currency headwinds.
The company expects revenues between $1.305 billion and $1.315 billion for 2024 compared with the prior guidance of $1.330 billion and $1.355 billion. The Zacks Consensus Estimate is currently pegged at $1.34 billion.
Adjusted earnings per share is expected to be in the range of $3.95 to $4.02 compared with the prior guided range of $4.25 to $4.35. The Zacks Consensus Estimate is currently pegged at $4.30.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -15.09% due to these changes.
VGM Scores
At this time, Conmed has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Conmed has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Conmed belongs to the Zacks Medical - Dental Supplies industry. Another stock from the same industry, Align Technology (ALGN - Free Report) , has gained 3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Align Technology reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of +2.6%. EPS of $2.41 for the same period compares with $2.22 a year ago.
Align Technology is expected to post earnings of $2.31 per share for the current quarter, representing a year-over-year change of +7.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Align Technology. Also, the stock has a VGM Score of F.