CONMED Corporation Scales 52-Week High
Riding on a steady growth momentum, shares of CONMED Corporation (CNMD) reached a new 52-week high of $50.47 in mid-day trading on May 19. Shares of the company closed a little lower at $49.45 on the same day, translating to a healthy 1-year return of 49.3%.
CONMED has a market cap of $1.35 billion while average volume of shares traded over the last three months stands at approximately 209.2K.
Impressive 2014-first-quarter results indicating strong bottom-line growth and consistent cash flow generation along with the introduction of eight new products contributed to the growth trajectory of this medical technology company.
On Apr 24, CONMED posted adjusted earnings of 49 cents for the first quarter, reflecting a rise of 8.9% from 45 cents in the same quarter of 2013. The quarter also clocked a positive earnings surprise of 4.3%.
CONMED’s top-line growth benefited from higher single-use devices sales in the international markets, partly negated by weaker capital product revenues. With the recent introduction of the IM8000 surgical visualization system and the Hall 50 powered surgical hand pieces, CONMED aims to drive capital product business growth through the remainder of 2014.
CONMED continues to focus on improving margins through cost reduction initiatives, launching new products and enhancing single-use products mix. Keeping in line with the trend of improving margins, CONMED registered a year-over-year growth of over 100 basis points in adjusted EBITDA margin in the quarter.
Management reiterated its 2014 adjusted earnings and revenue outlook on the back of improving economic conditions and synergies from new product introductions.
Adjusted earnings per share are anticipated between $1.90 and $2.00, reflecting a 5–10.5% rise from 2013. The Zacks Consensus Estimate for the same stands at $1.92.
For full-year 2014, CONMED maintained its revenue guidance in the range of $770 to $780 million, reflecting a 1–2% rise from 2013. The Zacks Consensus Estimate for the same is pegged at $771 million.
Currently, CONMED carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the medical/dental supply industry include Alphatec Holdings, Inc. (ATEC), The Cooper Companies Inc. (COO) and Steris Corp. (STE). While Alphatec Holdings sports a Zacks Rank #1 (Strong Buy), The Cooper Companies and Steris Corp. carry a Zacks Rank #2 (Buy).
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