CONMED Corporation CNMD delivered fourth-quarter 2024 adjusted earnings per share (EPS) 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.

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GAAP EPS 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.

Financial Position

CNMD 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.

CONMED Corporation Price, Consensus and EPS Surprise

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

2025 Guidance Issued

CONMED 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 Zacks Consensus Estimate for the same is pegged at $1.40 billion.

The company also expects 2025 adjusted EPS in the range of $4.25-$4.40. The Zacks Consensus Estimate for the same is pinned at $4.41.

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.

Our Take

CONMED exited the fourth quarter of 2024 on a better-than-expected note, wherein earnings and revenues beat their respective Zacks Consensus Estimate. The fourth quarter witnessed the positive impact of strong demand for CNMD’s AirSeal insufflator, which is expected to continue driving top-line growth in the upcoming quarter as well.

Per the fourth-quarter earnings call, CNMD is prioritizing growth areas like AirSeal, Buffalo Filter, BioBrace, and the Foot & Ankle portfolio, with significant investments and strategies to strengthen these high-potential segments in 2025.

Per management, gross margins for 2025 are expected to remain flat due to continued supply chain challenges and currency headwinds, with little room for further short-term improvements.

Meanwhile, CNMD’s shares plunged 9.5% in the after-market session on Wednesday, likely because revenue and EPS guidance for 2025 were below estimates. However, the company’s shares have gained 13.1% in the past six months compared with the industry’s 5.2% growth. The broader S&P 500 Index has gained 16.6% in the same time frame.

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Zacks Rank and Stocks to Consider

CNMD carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Masimo MASI, ResMed Inc. RMD and Cardinal Health CAH.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 11.8% for 2025. MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 51.4% compared with the industry’s 6.8% growth in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

ResMed, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.8%. RMD’s earnings surpassed estimates in each of the trailing four quarters, with the average being 6.4%.

ResMed has gained 32.4% compared with the industry’s 16.5% growth in the past year.

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.2%.

Cardinal Health’s shares have gained 21.7% compared with the industry’s 6.1% growth in the past year.

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