Investors looking for stocks in the Medical - Dental Supplies sector might want to consider either Conmed (CNMD) or Merit Medical (MMSI) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive e ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each targeting different investment strategies [3][4][5][6] - Value Score focuses on identifying undervalued stocks using financial ratios [3] - Growth Score emphasizes a company's financial health and future growth potential [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Its Importance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +23.93% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Company Spotlight: Conmed Corporation - Conmed Corporation is a global medical technology company specializing in surgical devices for orthopedics and general surgery [11] - The company operates in two segments: Orthopedics and General Surgery, offering innovative products like BioBrace and advanced energy devices [11] - Conmed holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [12] - The company is projected to achieve year-over-year earnings growth of 7.7% for the current fiscal year, with recent earnings estimates revised upward [12][13]

Core Insights - Investors in the Medical - Dental Supplies sector may consider Conmed (CNMD) and Merit Medical (MMSI) as potential value stocks [1] - A strong Zacks Rank combined with a good Value grade is identified as an effective strategy for finding value stocks [2] - Both CNMD and MMSI currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] Valuation Metrics - CNMD has a forward P/E ratio of 9.88, while MMSI has a forward P/E of 23.47, suggesting CNMD may be undervalued [5] - The PEG ratio for CNMD is 1.50, compared to MMSI's PEG ratio of 2.39, indicating CNMD's better valuation relative to its expected earnings growth [5] - CNMD's P/B ratio is 1.36, while MMSI's P/B ratio is 3.35, further supporting CNMD's position as a more attractive value option [6] Conclusion - Based on the valuation metrics, CNMD is considered the superior value option compared to MMSI [7]

Key Takeaways CONMED posted Q3 adjusted EPS of $1.08 and revenues of $337.9 million, both topping the consensus estimate.CNMD's strong performance in General and Orthopedic Surgery fueled 6.7% year-over-year revenue growth.CONMED's gross margin fell 736 bps to 49.2%, while operating margin plunged 1723 bps to 3.5% in Q3.CONMED Corporation (CNMD) delivered adjusted earnings per share (EPS) of $1.08 in the third quarter of 2025, up 2.9% year over year. The figure beat the Zacks Consensus Estimate by 2.9%.The ...

Financial Performance - Net sales increased by 6.7% to $337.9 million for the three months ended September 30, 2025, and by 4.2% to $1,001.5 million for the nine months ended September 30, 2025, compared to the same periods in 2024[89]. - Orthopedic surgery sales grew by 5.9% and 3.0% for the three and nine months ended September 30, 2025, respectively, driven by specific product offerings[90]. - General surgery sales increased by 7.3% and 5.1% for the three and nine months ended September 30, 2025, respectively, primarily due to growth in key product lines[90]. - Gross profit margins decreased by 250 basis points to 53.1% for the nine months ended September 30, 2025, compared to 55.6% in the same period of 2024[90]. Costs and Expenses - Cost of sales rose to $171.8 million for the three months ended September 30, 2025, compared to $137.7 million in the same period of 2024, leading to a gross profit margin decrease of 730 basis points to 49.2%[90]. - Selling and administrative expenses increased to $140.3 million for the three months ended September 30, 2025, compared to $99.7 million in the same period of 2024, with a percentage of net sales rising by 1,000 basis points to 41.5%[93]. - The company incurred $3.7 million and $12.3 million in consulting costs for supply chain and manufacturing improvements during the three and nine months ended September 30, 2025, respectively[91]. - A write-off of $19.7 million in inventory, equipment, tooling, and patents occurred due to the cancellation of planned new product lines during the three and nine months ended September 30, 2025[92]. - The company experienced higher manufacturing and operating costs due to inflationary pressures and ongoing supply chain challenges[109]. International Sales - International sales accounted for approximately 43% of consolidated net sales for both the nine months ended September 30, 2025, and 2024[83]. Future Agreements and Sales - The company will not renew its Distribution Agreement for the Gore® VIABIL® device after December 31, 2026, which represented $44.1 million in net sales for the nine months ended September 30, 2025[86]. Research and Development - Research and development expense increased to $13.9 million in Q3 2025, compared to $13.6 million in Q3 2024, while it decreased to $41.0 million in the nine months ended September 30, 2025, from $41.3 million in the same period in 2024[95]. Interest and Tax Expenses - Interest expense decreased to $7.6 million in Q3 2025 from $9.3 million in Q3 2024, and to $23.7 million in the nine months ended September 30, 2025, from $28.4 million in the same period in 2024[96]. - Income tax expense recorded an effective tax rate of 33.1% for Q3 2025, compared to 13.2% for Q3 2024, and 27.6% for the nine months ended September 30, 2025, compared to 17.4% for the same period in 2024[100]. Cash Flow and Financing - Net cash provided by operating activities was $124.4 million in the nine months ended September 30, 2025, compared to $123.6 million in the same period in 2024[105]. - Capital expenditures increased to $14.7 million in the nine months ended September 30, 2025, from $9.0 million in the same period a year ago[107]. - Net cash used in financing activities was $98.5 million in the nine months ended September 30, 2025, compared to $99.9 million in the same period in 2024[108]. - As of September 30, 2025, there were $60.0 million in borrowings outstanding on the term loan facility, with no borrowings under the revolving credit facility[110]. - The Board of Directors authorized a $150.0 million share repurchase program effective October 31, 2025, with expectations to repurchase at least $25.0 million in shares annually starting in 2026[115]. Debt Covenants - The eighth amended and restated senior credit agreement contains covenants requiring the maintenance of certain financial ratios and restricting dividend payments[111].

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For the quarter ended September 2025, Conmed (CNMD) reported revenue of $337.93 million, up 6.7% over the same period last year. EPS came in at $1.08, compared to $1.05 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $336.52 million, representing a surprise of +0.42%. The company delivered an EPS surprise of +2.86%, with the consensus EPS estimate being $1.05.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Conmed (CNMD) came out with quarterly earnings of $1.08 per share, beating the Zacks Consensus Estimate of $1.05 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.86%. A quarter ago, it was expected that this medical technology company would post earnings of $1.13 per share when it actually produced earnings of $1.15, delivering a surprise of +1.77%.Over the last four quarters, th ...

Financial Data and Key Metrics Changes - Total sales for Q3 2025 were approximately $338 million, representing a 6.7% year-over-year growth as reported and 6.3% growth in constant currency [4][12] - Adjusted net income for the quarter was $33.4 million, up 2.2% year over year, while adjusted diluted earnings per share increased by 2.9% to $1.08 [5][15] - Adjusted gross margin for Q3 was 56.1%, slightly ahead of projections, despite a 40 basis point decline compared to Q3 2024 [13] Business Line Data and Key Metrics Changes - General Surgery sales grew 6.9% globally on a constant currency basis, while Orthopedics delivered 5.3% constant currency growth globally [5] - U.S. orthopedic sales increased by 5.5%, and international orthopedic sales grew by 5.2% [12] - Total worldwide general surgery sales increased by 6.9%, with U.S. general surgery sales growing by 6.0% and international sales increasing by 9.2% [12] Market Data and Key Metrics Changes - U.S. sales increased by 5.9% year over year, while international sales grew by 6.8% [12] - The company noted a significant opportunity in the Foot & Ankle franchise, focusing on driving growth through expanded adoption and innovation [6] Company Strategy and Development Direction - The company is undergoing a comprehensive strategic review to sharpen focus, improve margin profiles, and position for long-term growth [9] - The review has identified strong growth opportunities in minimally invasive robotic and laparoscopic surgery, smoke evacuation, and orthopedic soft tissue repair [9] - A new $150 million share repurchase program has been authorized, transitioning from a legacy dividend policy to enhance financial flexibility [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering top-line growth and margin expansion supported by a focused portfolio and operational discipline [10] - The company is optimistic about its ability to meet demand and improve supply chain issues, with record manufacturing volumes achieved in Q3 [32] Other Important Information - The company expects Q4 revenue to be between $363 million and $370 million, indicating mid-single-digit constant currency growth [17] - Adjusted EPS guidance for Q4 is projected to be between $1.30 and $1.35, with full-year guidance at $4.48-$4.53 [17] Q&A Session Summary Question: What drove the shift in capital allocation strategy and should we expect any other changes? - Management indicated that no other changes are expected and that the shift was made to align with peers and return cash to shareholders through share repurchases instead of dividends [20][21] Question: Can you talk about supply and demand for 2026? - Management refrained from providing guidance for 2026 at this time, indicating that they will address it in the future [22][23] Question: Was there any incremental tariff headwind? - Management clarified that the tariff impact has been consistent with previous forecasts and explained how tariffs affect manufacturing variances [24][25] Question: How is AirSeal performing in the market? - Management noted that AirSeal is seeing early adoption, but hospitals must meet commitment volumes before fully utilizing it [26][30] Question: What initiatives strengthened the supply chain in Q3? - Management highlighted improvements in procurement, planning, and production areas, leading to record manufacturing volumes [32] Question: What are the latest thoughts on share loss and recapture? - Management expressed that while they are not declaring victory, they are optimistic about regaining market share as supply chain issues resolve [41]

Investor Presentation Q3 2025 Earnings Pat J. Beyer President and Chief Executive Officer Todd W. Garner Executive Vice President and Chief Financial Officer November 5, 2025 Forward-Looking Information This presentation may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward- looking statements herein or in previous disclosures ...