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CONMED (CNMD) Earnings and Revenue Surpass Estimates in Q1

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CONMED Corporation CNMD reported first-quarter 2021 adjusted earnings per share (EPS) of 63 cents, which beat the Zacks Consensus Estimate of 43 cents by 46.5%. Also, the bottom line rose 23.5% from the year-ago quarter.

Revenue Details

The New York-based medical products manufacturer reported revenues of $232.7 million, up 8.7% year over year on a reported basis and 7.2% in constant currency (cc). The top line also beat the Zacks Consensus Estimate by 7%.

Segment Details

Orthopedic Surgery

Revenues at the segment totaled $107.2 million, up 7.9% from the year-ago quarter.

On the domestic and international front, Orthopedics revenues rose 0.2% and 12.5%, respectively, from the prior-year levels.

General Surgery

Revenues at the segment amounted to $125.5 million, up 9.4% year over year.
Domestically, General Surgery sales rose 6.1% year over year, while international sales rose 17.6%.

Sales by Geography

In the reported quarter, sales in the United States amounted to $123.9 million, up 4.3% year over year. International sales rose 14.3% to $108.8 million.

Margins

Gross profit in the quarter totaled $128.4 million, up 7.8% year over year. Per management, gross margin was 55.2%, contracting 47 bps.

Operating costs came in at $108.4 million, up 2.2%

Operating profit amounted to $20.1 million, up 52.5%. Operating margin came in at 8.6%, up 248 basis points (bps).

CONMED Corporation Price, Consensus and EPS Surprise

CONMED Corporation Price, Consensus and EPS Surprise
CONMED Corporation Price, Consensus and EPS Surprise

CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation Quote

2021 Guidance

Revenues are projected in the range of $1-$1.03 billion compared with its previous guidance between $975 million and $1.02 billion. The Zacks Consensus Estimate is pegged at $999.4 million.

Wrapping Up

CONMED exited the first quarter on a strong note. Also the company witnessed a strong performance across its Orthopedic and General Surgery unit. Further, it saw sales growth in both its domestic and overseas markets. Per management, the company displayed strength and agility despite a tough first-quarter operating environment resulting from the ongoing COVID-19 impact on its customers’ surgical procedure volumes.

However, contraction in gross margin is a concern. Additionally, CONMED operates in a highly competitive environment, especially with respect to the General Surgery business.

Zacks Rank and Key Picks

CONMED currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are The Cooper Companies COO, Owens & Minor, Inc. OMI and DENTSPLY SIRONA Inc. XRAY.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for The Cooper Companies’ second-quarter fiscal 2021 revenues is pegged at $685.2 million, suggesting an improvement of 30.5% from the year-ago quarter’s reported figure. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago period’s reported figure. The company currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for Owens & Minor’s first quarter 2021 adjusted EPS is currently pegged at 97 cents. The consensus estimate for first-quarter revenues stands at $2.29 billion. The company currently carries a Zacks Rank of 2.

DENTSPLY SIRONA is presently Zacks #2 Ranked. The Zacks Consensus Estimate for first-quarter 2021 adjusted EPS is pegged at 55 cents. The consensus estimate for revenues stands at $929.3 million.

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