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It has been about a month since the last earnings report for Conmed (CNMD). Shares have lost about 12.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Conmed due for a breakout? 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.
CNMD's Q4 Earnings & Sales Beat Estimates, ‘25 Outlook Weak
CONMED delivered fourth-quarter 2024 adjusted earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.20 by 11.7%. The bottom line improved 26.4% from the year-ago level.
GAAP earnings per share for the quarter was $1.08 compared with $1.50 in the year-ago period.
CNMD’s Revenues in Detail
CONMED’s revenues totaled $345.9 million, up 5.8% year over year. The top line beat the Zacks Consensus Estimate by 1.4%. At constant exchange rate (CER), revenues increased 6%.
The top line was driven primarily by strength in the General Surgery segment and continued demand for innovative products like AirSeal.
CNMD’s Full-Year 2024 Results
For 2024, CNMD’s revenues totaled $1.31 billion, up 5% year over year on a reported basis and 5.3% on a constant currency basis.
CNMD’s full-year adjusted EPS was $4.17, up 20.9% compared to 2023.
CONMED’s Segmental Details
Revenues in the Orthopedic Surgery segment totaled $139 million, up 1.8% from the year-ago level on a reported basis. At CER, revenues increased 2.4%.
Sales improved 5.2% on a reported basis in the United States. The figure declined 0.2% (up 0.6% at CER) year over year in international markets.
Revenues in the General Surgery segment amounted to $206.9 million, up 8.6% year over year on a reported basis and 8.7% at CER. U.S. sales increased 7.4% year over year. International sales increased 11.9% on a reported basis (up 12% at CER).
Sales by Geography
Sales in the United States totaled $203.3 million, up 6.8% year over year. International sales amounted to $142.6 million, up 4.4% year over year on a reported basis and up 5% at CER.
Margins
CONMED’s gross profit improved 8.9% year over year to $198.3 million. The gross margin improved 160 basis points to 57.3%.
Selling & administrative expenses increased 12.5% year over year to $132.7 million. Research and development expenses decreased 6.1% year over year to $13.2 million.
The company recorded an operating income of $52.5 million compared with $50.2 million in the prior-year quarter. The operating margin was 15.2%, down 10 basis points.