Conmed (CNMD) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.76%. A quarter ago, it was expected that this medical technology company would post earnings of $1.11 per share when it actually produced earnings of $1.06, delivering a surprise of -4.50%.Over the last four quarters, the ...

Financial Performance - CONMED Corporation reported net sales of $312.3 million for Q1 2024, a 5.7% increase from $295.5 million in Q1 2023[6] - Gross profit for the quarter was $171.965 million, representing 55.1% of sales, compared to 52.6% in the same quarter last year[6] - Income from operations increased to $35.013 million, or 11.2% of sales, up from $12.699 million, or 4.3% of sales, in Q1 2023[6] - Net income for Q1 2024 was $19.709 million, significantly higher than $1.819 million in Q1 2023[6] - Basic EPS for the quarter was $0.64, compared to $0.06 in the prior year[6] - Diluted net earnings per share (GAAP) were $0.63, compared to $0.06 in Q1 2023[22] - Adjusted diluted net earnings per share increased by 19.7% to $0.79 compared to Q1 2023[22] - EBITDA for Q1 2024 was $53.051 million, with an EBITDA margin of 17.0%, up from 10.4% in Q1 2023[14] - Adjusted EBITDA for Q1 2024 was $56.301 million, with an adjusted EBITDA margin of 18.0%, compared to 17.3% in Q1 2023[14] Sales Performance - Domestic sales grew by 7.2% to $176.4 million, while international sales increased by 3.8% to $135.9 million[8] - The orthopedic surgery segment reported a 2.8% increase in sales, while general surgery sales rose by 8.0%[8] - Sales for Q1 2024 were $312.3 million, representing a 5.7% increase year-over-year and a 5.9% increase in constant currency[22] - Domestic revenue increased by 7.2% year-over-year, while international revenue increased by 3.8% as reported and 4.2% in constant currency[22] Future Guidance - The company expects full-year adjusted diluted EPS to be in the range of $4.25 to $4.35, down from the previous range of $4.30 to $4.40 due to foreign currency headwinds[1] - The company expects full-year reported revenue to be between $1.330 billion and $1.355 billion, down from previous guidance of $1.340 billion to $1.365 billion due to currency headwinds[23] Operational Adjustments - The company incurred severance costs and wrote off inventory related to the cancellation of a planned new product line in 2024[12] - The company recorded an accrual adjustment related to the termination of a distributor agreement in 2024[12] - The company continues to utilize non-GAAP financial measures to provide a clearer understanding of its operational performance[17] Growth Outlook - The company is well-positioned for continued growth with a diverse portfolio across its markets[1] - Research and development expenses increased to $13.594 million from $12.539 million year-over-year[6]

CONMED Corporation (CNMD) is well poised for growth in the coming quarters, courtesy of its broad product spectrum. The optimism, led by the solid fourth-quarter 2023 performance and a potential General Surgery, is expected to contribute further. However, headwinds from supply-chain constraints and data security threats persist.This currently Zacks Rank #3 (Hold) company’s shares have lost 15.2% in the past year against the industry’s 3.2% growth. The S&P 500 Index has increased 24.8% in the same time frame ...

The changes in the net carrying amount of goodwill for the years ended December 31, are as follows: Amortization expense related to intangible assets which are subject to amortization totaled $35.2 million, $33.7 million and $33.3 million for the years ending December 31, 2023, 2022 and 2021, respectively, and is included as a reduction of revenue (for amortization related to our sales representation, marketing and promotional rights) and in selling and administrative expense (for all other intangible asset ...

CONMED Corporation (CNMD) delivered adjusted earnings per share (EPS) of $1.06 in fourth-quarter 2023, which missed the Zacks Consensus Estimate of $1.11 by 4.5%. However, the bottom line improved 152.4% from the year-ago quarter’s level.GAAP EPS for the quarter was $1.05 compared with 86 cents per share in the year-ago period.The company’s shares have lost 28.0% in the past six months compared with the industry’s fall of 2.2%. The broader S&P 500 Index has gained 7% in the same time frame.Image Source: Zac ...

Financial Data and Key Metrics Changes - Total sales for Q4 2023 reached $327 million, a year-over-year increase of 30% as reported and 32% in constant currency [4][10] - For the full year 2023, total sales were $1.245 billion, representing a year-over-year increase of 19% as reported and 21% in constant currency [34][113] - Adjusted net income for Q4 was $33.2 million, an increase of 156.5% compared to Q4 2022, with adjusted diluted earnings per share of $1.06, up 152.4% year-over-year [10][110] - Adjusted gross margin for Q4 was 56.4%, a 50-basis-point sequential improvement over Q3 and an increase of 220 basis points from the prior-year quarter [114] - The adjusted effective tax rate for the full year was 23.0% [39] Business Line Data and Key Metrics Changes - General Surgery revenue increased 41.7% in Q4, with US revenue growing 47.6% and international revenue increasing 27.8% [7] - Orthopedics revenue grew 17.7% for the full year, with US sales increasing 15.2% and international sales rising 19.2% [37] - The BioBrace platform exceeded expectations and is expected to continue strong growth as market reach expands [5][143] Market Data and Key Metrics Changes - The company reported strong optimism across its categories of Orthopedics and General Surgery, with a higher concentration of sales outside the US compared to most med-tech companies [17] - The company expects revenue growth in 2024 to be in the range of $1.34 billion to $1.365 billion, representing year-over-year growth of approximately 8% to 10% [11] Company Strategy and Development Direction - The strategic outlook for the company remains strong, focusing on delivering clinically differentiated solutions across its business [35] - The company aims for 60% gross margins by the end of 2025, with expectations of being close to that milestone in 2026 if not achieved by 2025 [12][55] - The company is actively working on integrating acquisitions and expanding its product portfolio through both organic and inorganic growth [5][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver top-line growth and leveraged earnings growth, driven by a talented global team and an innovative high-growth portfolio [35][120] - The company acknowledged challenges in the Orthopedics business due to supply issues but expects improvements as integration processes stabilize [46][80] - Management remains cautious about potential competitive threats but believes the impact on the AirSeal product will be minimal [117][90] Other Important Information - Cash flow from operations for Q4 was $56.4 million, a record for the company, compared to cash flow used for operations of $11.6 million in Q4 2022 [40] - The company expects R&D expenses in 2024 to be between 4% and 4.5% of sales [42] Q&A Session Summary Question: Concerns about Q4 performance and future growth - Management acknowledged that Q4 missed expectations but emphasized that the overall business remains healthy and is expected to return to double-digit growth [20][54] Question: M&A strategy and leverage - Management indicated that they are continuously looking for M&A opportunities but noted that the bar for acquisitions is higher due to market conditions [21][51] Question: Competitive landscape and product performance - Management reassured that the BioBrace product is performing well and is expected to grow, despite some near-term challenges in the Foot and Ankle segment [48][143] Question: Supply chain issues and their impact - Management clarified that supply chain disruptions have affected the Orthopedics business but are improving, with expectations to return to normal operations by Q2 2024 [46][80] Question: Guidance for 2024 and market expectations - Management provided guidance for 2024, expecting revenue growth of 8% to 10%, while acknowledging potential headwinds from competitive products [11][48]

Conmed (CNMD) reported $327.05 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 30.4%. EPS of $1.06 for the same period compares to $0.42 a year ago.The reported revenue represents a surprise of -1.77% over the Zacks Consensus Estimate of $332.94 million. With the consensus EPS estimate being $1.11, the EPS surprise was -4.51%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...

Conmed (CNMD) came out with quarterly earnings of $1.06 per share, missing the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.51%. A quarter ago, it was expected that this medical technology company would post earnings of $0.83 per share when it actually produced earnings of $0.90, delivering a surprise of 8.43%.Over the last four quarters, the ...

2024 Financial Guidance Revenue $1.340 B to $1.365 B, ~8% to ~10% growth Q1: ~3% to ~5% growth* Q2: Mid-to-high-single-digit growth Adjusted SG&A Expense 60 to 80 basis point improvement as a percent of sales Q4 2023 Earnings Call 10 Environmental Social Governance | --- | --- | --- | --- | --- | |-------|--------------------------------------------------|------------------------------------------------------------------------------|-------|------------------------------------------------------------------- ...

Key PointsCONMED shares dove 10% last week, retreating below the $100.00 level in an apparent bout of profit taking on one of the market’s hottest groups.The company is expected to have generated approximately $332 million in fourth quarter sales with EPS forecast to jump 164% year-over-year to $1.11.Even if the "Ozempic effect" is large, it will likely have an insignificant impact on CONMED’s overall financial results since the company provides products for many procedures other than bariatric surgery.5 st ...