Financial Data and Key Metrics Changes - Total sales for Q4 2024 were $345.9 million, a year-over-year increase of 5.8% as reported and 6% in constant currency [8] - GAAP net income for Q4 was $33.8 million, compared to $33.1 million in the prior year, while adjusted net income increased 26.2% year-over-year to $41.8 million [9][12] - For the full year, sales reached $1.307 billion, representing a 5% year-over-year growth as reported and 5.3% in constant currency [10] Business Line Data and Key Metrics Changes - Orthopedic business sales increased 2.4% in Q4 and 2.5% for the full year on a constant currency basis [10][21] - General Surgery business saw constant currency growth of 8.7% in Q4 and 7.5% for the full year [10][22] - AirSeal achieved strong double-digit growth, with record capital and disposable sales despite market dynamics [11] Market Data and Key Metrics Changes - U.S. sales increased 6.8% in Q4, while international sales grew 5.0% [19] - Total worldwide Orthopedic sales grew 2.4% in Q4, with U.S. Orthopedic sales growing 5.2% and international sales increasing 0.6% [20] - Total worldwide General Surgery sales increased 8.7% in Q4, with U.S. sales growing 7.4% and international sales increasing 12.0% [20] Company Strategy and Development Direction - The company is focused on resolving supply challenges in the Orthopedic business and maximizing growth drivers like AirSeal, Buffalo Filter, BioBrace, and Foot & Ankle portfolio [13][16] - A consulting firm has been engaged to expedite operational improvements and strengthen the Orthopedic business [14] - The company aims to enhance its portfolio's durability, growth, and profitability over the next decade [16][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of AirSeal, driven by strong demand for improved patient outcomes [15] - The company is cautious in its 2025 guidance, projecting revenue growth of 4% to 6% in constant currency, reflecting current operational challenges [38][39] - Management acknowledged the impact of currency headwinds and ongoing operational improvements on profitability [70][92] Other Important Information - Adjusted gross margin for Q4 was 57.6%, a 120 basis point improvement year-over-year [23] - The company reported a cash balance of $24.5 million at year-end, down from $38.5 million [31] - Capital expenditures for the full year were $13.1 million, compared to $19.0 million in 2023 [34] Q&A Session Summary Question: What accounts for the delta in growth rates? - Management attributed the delta to lingering supply chain challenges that have affected performance [61] Question: What is the outlook for AirSeal growth? - Management expects AirSeal to continue growing at double-digit rates due to strong clinical demand [64] Question: What factors contribute to the conservatism in guidance? - The conservatism is due to market conditions, timing of new products, and ongoing supply chain issues [66][70] Question: What is the strategy for capital allocation and M&A? - The company plans to focus on paying down debt and improving leverage, while remaining open to compelling acquisition opportunities [104] Question: How is the company addressing the impact of tariffs? - Management indicated that passing on tariff costs to hospitals may be challenging due to existing contracts [111][112]

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].

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] Value Score - The Value Score identifies attractive and discounted stocks using various financial ratios, appealing to value investors [4] Growth Score - The Growth Score emphasizes a company's financial health and future outlook, focusing on projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like recent price changes and earnings estimate shifts [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering earnings outlook changes [10][11][12] Company Spotlight: CONMED Corporation - CONMED Corporation, based in Utica, N.Y., specializes in surgical instruments and devices for minimally invasive procedures, employing approximately 3,600 individuals [13] - Currently rated 3 (Hold) by Zacks, CONMED has a VGM Score of A and a Value Style Score of A, with a forward P/E ratio of 18.32, indicating strong valuation metrics [14] - Recent earnings estimates for fiscal 2024 have been revised upward, with the Zacks Consensus Estimate increasing by $0.04 to $4.03 per share, alongside an average earnings surprise of 3.7% [14] - Given its solid Zacks Rank and favorable Style Scores, CONMED is recommended for investors' consideration [15]

Core Insights - The article discusses the Zacks Premium service, which provides tools and resources for investors to make informed decisions in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are guidelines that rate stocks based on value, growth, and momentum characteristics, helping investors identify securities likely to outperform the market in the short term [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Categories of Style Scores - **Value Score**: Focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [5] - **Growth Score**: Evaluates stocks based on projected earnings and sales growth, targeting companies with strong financial health [6] - **Momentum Score**: Assesses stocks based on price trends and earnings estimate changes, aiming to capitalize on market momentum [7] - **VGM Score**: Combines the three Style Scores to identify stocks with attractive value, growth, and momentum [8] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios [9] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [10] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [12] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [13] Company Spotlight: CONMED Corporation - CONMED Corporation, based in Utica, N.Y., specializes in surgical instruments and devices for minimally invasive procedures, employing approximately 3,600 people [15] - Currently rated 3 (Hold) with a VGM Score of A, CONMED shows a Growth Style Score of B, indicating a projected year-over-year earnings growth of 16.8% for the current fiscal year [16] - The Zacks Consensus Estimate for CONMED's earnings has increased by $0.04 to $4.03 per share, with an average earnings surprise of 3.7% [16][17]

Company Overview - CONMED Corporation is a major medical products manufacturer specializing in surgical instruments and devices for minimally invasive procedures and monitoring [11] - The company is headquartered in Utica, N.Y., employs approximately 3,600 people, and operates several manufacturing facilities [11] Investment Insights - CONMED has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid overall rating [11] - The company has a Momentum Style Score of B, with shares increasing by 10% over the past four weeks [12] - Six analysts have revised their earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.04 to $4.03 per share [12] - CONMED has an average earnings surprise of 3.7%, suggesting a positive outlook for earnings performance [12] Style Scores and Zacks Rank - The Zacks Rank and Style Scores are designed to help investors identify stocks with the best chances of outperforming the market [6][9] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for higher probability of success [9][10]

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 ...