CONMED's (CNMD) Q1 Earnings and Revenues Surpass Estimates
CONMED Corporation CNMD reported first-quarter 2022 adjusted earnings per share (EPS) of 70 cents, which surpassed the Zacks Consensus Estimate of 62 cents by 12.9%. The bottom line rose 11.1% from the year-ago quarter.
GAAP EPS for the quarter was 47 cents, up 51.6% from the year-ago quarter.
Revenues in Detail
CONMED’s first-quarter revenues were $242.3 million, up 4.1% year over year. The top line outpaced the Zacks Consensus Estimate by 2.9%.
At the constant exchange rate (CER), revenues improved 4.3%.
Segment Details
Revenues at the Orthopedic Surgery segment totaled $107.5 million, up 0.3% from the year-ago quarter on a reported basis. At CER, revenues increased 0.4%.
Orthopedics revenues rose 2.2% on a reported basis on the domestic front while declining 0.7% (down 0.5% at CER) from the prior-year levels on the international front.
CONMED Corporation Price, Consensus and EPS Surprise
CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation Quote
Revenues at the General Surgery segment amounted to $134.8 million, up 7.4% year over year on a reported basis and 7.7% at CER.
Domestically, General Surgery sales increased 7.5% year over year, while international sales advanced 7.3% on a reported basis (up 8.2% at CER).
Sales by Geography
In the reported quarter, sales in the United States amounted to $131.2 million, up 5.9% year over year. International sales were $111.1 million, up 2.2% year over year on a reported basis and 2.6% at CER.
Margins
In the quarter under review, CONMED’s gross profit rose 5.9% to $135.9 million. Gross margin expanded by 90 basis points (bps) to 56.1%.
Selling & administrative expenses increased 4.6% to $102.9 million. Research and development expenses rose 6.4% year over year to $10.7 million.
Operating profit totaled $22.4 million, reflecting an improvement of 11.8% from the prior-year quarter. Operating margin expanded by 70 bps to 9.3%.
2022 Guidance Revised
CONMED now projects full-year 2022 revenues in the range of $1.11 billion to $1.15 billion (up from the previously guided range of $1.08 billion to $1.13 billion). The Zacks Consensus Estimate is currently pegged at $1.09 billion.
Adjusted EPS for the full year is now expected in the range of $3.50 to $3.65 (down from the previously projected band of $3.60 to $3.85). The Zacks Consensus Estimate currently stands at $3.70.
Our Take
CONMED exited the first quarter on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. The company witnessed strong performances across its Orthopedic and General Surgery units. It saw sales growth in both its domestic and overseas markets. Expansion of both gross and operating margins bodes well for the stock.
Meanwhile, the continued pandemic-led impact in the first quarter does not augur well. CONMED operates in a highly competitive environment, especially with respect to the General Surgery business, which raises further apprehension.
Zacks Rank
CONMED currently has a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. OMCL, UnitedHealth Group Incorporated UNH and Alkermes plc ALKS.
Omnicell, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 16.9%. Revenues of $318.8 million outpaced the consensus mark by 0.7%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Omnicell has an estimated long-term growth rate of 16%. OMCL's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 13.4%.
UnitedHealth, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which beat the Zacks Consensus Estimate of a penny. First-quarter revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS' earnings surpassed estimates in each of the trailing four quarters, the average surprise being 350.5%.
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