Group 1 - Conmed reported quarterly earnings of $1.34 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, and up from $1.06 per share a year ago, representing an earnings surprise of 11.67% [1][2] - The company achieved revenues of $345.94 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.36%, compared to $327.05 million in the same quarter last year [2] - Conmed has outperformed the S&P 500, with shares increasing about 6.5% since the beginning of the year, while the S&P 500 gained 2.7% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1 on revenues of $334.22 million, and for the current fiscal year, it is $4.71 on revenues of $1.4 billion [7] - The Zacks Industry Rank indicates that the Medical - Dental Supplies sector is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Fourth quarter 2024 sales reached $345.9 million, a year-over-year increase of 5.8% as reported and 6.0% in constant currency[6] - Full-year 2024 sales totaled $1.307 billion, reflecting a 5.0% increase year-over-year as reported and 5.3% in constant currency[6] - Adjusted diluted net earnings per share for the fourth quarter were $1.34, marking a 26.4% increase compared to the fourth quarter of 2023[6] - The company expects full-year 2025 reported revenue between $1.344 billion and $1.372 billion, indicating a year-over-year constant currency growth of approximately 4% to 6%[3] - Full-year 2025 adjusted diluted net earnings per share are projected to be in the range of $4.25 to $4.40, accounting for a currency headwind of approximately $0.15 to $0.20[4] - Domestic revenue for the fourth quarter increased by 6.8% year-over-year, while international revenue grew by 4.4% as reported[6] - The company reported net income of $33.8 million for the fourth quarter, slightly up from $33.1 million in the same period last year[11] - Total revenue for the year ended December 31, 2024, was $733.0 million, with a gross profit margin of 56.1%[19] Profitability Metrics - Gross profit margin for the fourth quarter was 57.3%, compared to 55.7% in the fourth quarter of 2023[11] - Reported gross profit for Q4 2024 was $198.3 million, representing 57.3% of sales, compared to $182.2 million (55.7% of sales) in Q4 2023[15] - Adjusted net income for Q4 2024 was $41.8 million, with diluted EPS of $1.34, up from $33.2 million and $1.06 in Q4 2023[15] - Adjusted EBITDA for Q4 2024 was $80.0 million, with an adjusted EBITDA margin of 23.1%[28] - Adjusted gross profit margin for the year ended December 31, 2024, was 24.1%[19] Expenses and Costs - Research and development expenses for the full year were $54.4 million, compared to $52.6 million in 2023[11] - The company incurred $955,000 in costs due to Hurricane Milton impacting the Largo, FL facility in 2024[16] - The company recorded lease impairment expenses of $606,000 in Q4 2024[16] Strategic Focus and Future Outlook - The company aims to enhance operations and establish a stronger foundation for future above-market revenue and profitability growth in 2025[2] - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[29] Non-GAAP Financial Measures - The company utilizes non-GAAP financial measures to provide meaningful insights into its financial results, including percentage sales growth in constant currency and adjusted net income[31] - Net sales on a constant currency basis is analyzed to measure comparability of results between periods, excluding the impact of foreign currency exchange rates[32] - The company emphasizes that non-GAAP measures should not be considered in isolation and encourages a comprehensive review of financial statements[33] - Adjusted measures are important indicators of operations as they exclude items not indicative of core operating results, providing a baseline for analyzing trends[31] - The company believes that EBITDA is a useful non-GAAP measurement for assessing aspects of cash flow[31] - Management bases certain incentive compensation on non-GAAP financial measures, reflecting their importance in reviewing operating results[31] Risk Factors and Forward-Looking Statements - The company’s Annual Report on Form 10-K discusses risk factors that could cause actual results to differ from forward-looking statements[30] - Forward-looking statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, indicating management's expectations for future performance[30] - The financial impact of certain items affecting earnings performance is uncertain and may be material to consolidated statements of income[34] - The company is unable to provide a quantitative reconciliation of expected diluted net earnings per share to expected adjusted diluted net earnings per share due to uncertainties related to acquisition and integration charges[34]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, CONMED and McKesson, as strong candidates based on their valuation metrics and earnings outlook. Group 1: CONMED (CNMD) - CONMED has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock is currently trading at a P/E ratio of 14.19, which is lower than the industry average of 17.14 [4] - CNMD's Forward P/E has fluctuated between 13 and 31.12 over the past 52 weeks, with a median of 15.41 [4] - The PEG ratio for CNMD is 0.74, significantly lower than the industry average of 1.94, indicating potential undervaluation [5] - CNMD's P/B ratio stands at 2.27, compared to the industry's average of 4.56, suggesting a solid valuation [6] - The P/CF ratio for CNMD is 10.19, which is also lower than the industry average of 18.44, reinforcing its undervalued status [7] Group 2: McKesson (MCK) - McKesson is also rated 2 (Buy) with a Value Score of A, making it another attractive option for value investors [8] - The stock is trading at a forward earnings multiple of 16.24, which is below the industry P/E of 17.14 [8] - MCK's PEG ratio is 1.15, lower than the industry average of 1.94, indicating it may be undervalued [8] - The P/B ratio for McKesson is -27.89, which is significantly lower than the industry's average of 4.56, suggesting a unique valuation scenario [9] - Overall, both CONMED and McKesson are highlighted as likely undervalued stocks with strong earnings outlooks, making them appealing to value investors [10]

Core Viewpoint - CONMED Corporation is positioned for growth due to its diverse product offerings and strong recurring revenue base, particularly in General Surgery, despite facing supply chain challenges and data security threats [1][2]. Group 1: Financial Performance - CONMED has a market capitalization of $2.26 billion and projects a 19.3% earnings growth for fiscal 2025 [2]. - The company has surpassed earnings estimates in three of the last four quarters, with an average surprise of 3.71% [2]. - The Zacks Consensus Estimate for earnings in 2024 has improved by 1% to $4.03 per share, with projected fourth-quarter revenues of $341.3 million, indicating growth of 4.3% year-over-year [12]. Group 2: Product and Market Position - CONMED's General Surgery segment is gaining traction with unique products like the Anchor Tissue Retrieval bag, contributing to a 3.6% revenue increase at constant exchange rates in Q3 2024 [4]. - The company has a broad product spectrum across various specialties, including orthopedics and gastroenterology, with key innovations like Hi-Fi Tape and the IM8000 surgical visualization system [6][7]. - Approximately 85% of CONMED's revenues come from recurring sales of single-use disposable products, which are increasingly preferred by healthcare facilities [8]. Group 3: Market Challenges - Supply chain constraints and data security threats are ongoing challenges for CONMED, potentially impacting operational stability and financial performance [1][11]. - The U.S. foot and ankle business may face sales declines due to the impact of hurricanes Helene and Milton, which caused procedure rescheduling [5].

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores a ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zac ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores. What are the Zacks Style Scores? The Zacks ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed a ...

CONMED Corporation (CNMD) delivered third-quarter 2024 adjusted earnings per share (EPS) of $1.05, which beat the Zacks Consensus Estimate of 99 cents by 6.1%. The bottom line improved 16.7% from the year-ago level.GAAP EPS for the quarter was $1.57 compared with 50 cents in the year-ago period.The company’s shares have lost 40.4% so far this years compared with the industry’s decline of 1.5%. The broader S&P 500 Index has gained 22.9% in the same time frame.Image Source: Zacks Investment ResearchRevenues i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Common Stock, $0.01 par value CNMD NYSE Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the ...