Conmed (CNMD) Down 12.2% Since Last Earnings Report: Can It Rebound?

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 WeakCONMED 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 DetailCONMED’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 ResultsFor 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 DetailsRevenues 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 GeographySales 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.MarginsCONMED’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.Financial PositionCNMD exited the fourth quarter with a cash balance of $24.5 million compared with $38.5 million in the previous quarter.Cash flow provided from operations in the reported quarter was $43.3 million compared with $56.4 million in the fourth quarter of 2023.2025 Guidance IssuedCONMED provided its revenue and earnings guidance for 2025.The company expects full-year 2025 revenues between $1.34 billion and $1.37 billion. This represents year-over-year constant-currency growth of approximately 4% to 6%.The company also expects 2025 adjusted earnings per share in the range of $4.25-$4.40.The company also provided revenue guidance for the first quarter of 2025. CNMD expects reported sales in the first quarter between $310 million and $316 million. How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -19.2% due to these changes.VGM ScoresAt this time, Conmed has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Conmed has a Zacks Rank #4 (Sell). 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Click to get this free report CONMED Corporation (CNMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks