Dublin, Sept. 12, 2024 (GLOBE NEWSWIRE) -- The "Carpal Tunnel Release Systems - Global Strategic Business Report" has been added to ResearchAndMarkets.com's offering. The global market for Carpal Tunnel Release Systems was estimated at US$604.4 Million in 2023, and is projected to reach US$809.7 Million by 2030, growing at a CAGR of 4.3% from 2023 to 2030. The growth in the carpal tunnel release systems market is driven by several factors, including technological advancements, an increase in the prevalence ...

It has been about a month since the last earnings report for Conmed (CNMD) . Shares have added about 13.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Conmed due for a pullback? 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. CONMED Q2 Earnings Beat, Sales Rise Y/Y,'24 View Cut ...

Core Insights - CONMED Corporation (CNMD) reported adjusted earnings per share (EPS) of 98 cents for Q2 2024, exceeding the Zacks Consensus Estimate of 92 cents by 6.5% and showing an 18.1% improvement year-over-year [1] - The company's revenues totaled $332.1 million, reflecting a 4.5% year-over-year increase but missing the Zacks Consensus Estimate by 0.7% [3] - CONMED's stock has declined by 14.7% over the past six months, while the industry has seen a modest rise of 1.5% [1] Revenue Performance - Revenue growth was driven by strong performance in both the U.S. and international markets, with constant exchange rate (CER) revenues increasing by 5.2% [3] - The Orthopedic Surgery segment reported revenues of $139.5 million, down 0.9% year-over-year, while the General Surgery segment saw revenues of $192.6 million, up 8.9% year-over-year [4][5] - U.S. sales increased by 6.1% year-over-year, with international sales rising by 2.6% on a reported basis [6] Margins and Expenses - Gross profit improved by 7.6% to $183.7 million, with gross margin increasing by 160 basis points to 55.3% [7] - Selling and administrative expenses decreased by 5.5% to $122.5 million, while research and development expenses rose by 3.9% to $14.1 million [7] Operating Income - The company recorded an operating income of $47.1 million, significantly up from $27.4 million in the prior year, with an operating margin of 14.2%, an increase of 560 basis points [8] 2024 Guidance - CONMED revised its revenue guidance for 2024 to a range of $1.305 billion to $1.315 billion, down from the previous guidance of $1.330 billion to $1.355 billion [9] - Adjusted EPS guidance was also lowered to a range of $3.95 to $4.02, compared to the prior range of $4.25 to $4.35 [10] Market Outlook - The company faces supply-chain issues affecting its Orthopedic segment, particularly in sports medicine and foot and ankle businesses, which may persist [11] - However, strong demand in the General Surgery business is expected to help mitigate the impact of these supply-chain challenges [12]

Financial Performance - Net sales increased by 4.5% to $332.1 million for the three months ended June 30, 2024, compared to $317.7 million for the same period in 2023, primarily driven by strong growth in the general surgery product line [89]. - General surgery sales rose by 8.9% to $192.6 million for the three months ended June 30, 2024, compared to $176.9 million in the same period of 2023 [90]. - Orthopedic surgery sales decreased by 0.9% to $139.5 million for the three months ended June 30, 2024, compared to $140.8 million in the same period of 2023 [90]. - Net income increased to 9.0% for the three months ended June 30, 2024, compared to 4.3% for the same period in 2023 [88]. - Gross profit margin improved by 160 basis points to 55.3% for the three months ended June 30, 2024, compared to 53.7% for the same period in 2023 [90]. Expenses and Costs - Cost of sales increased to $148.4 million for the three months ended June 30, 2024, compared to $147.0 million for the same period in 2023 [90]. - Selling and administrative expense decreased to $122.5 million in Q2 2024 from $129.7 million in Q2 2023, representing a 5.6% decrease [92]. - Research and development expenses were 4.2% of net sales for the three months ended June 30, 2024, compared to 4.3% for the same period in 2023 [88]. - Research and development expense increased to $14.1 million in Q2 2024 from $13.6 million in Q2 2023, a 3.7% increase [94]. - Interest expense decreased to $9.6 million in Q2 2024 from $10.0 million in Q2 2023, a 4% decrease [95]. - Income tax expense recorded an effective tax rate of 20.1% for Q2 2024 compared to 21.2% for Q2 2023, reflecting a reduction of 1.1 percentage points [97]. Cash Flow and Financing - Net cash provided by operating activities was $72.4 million in the first half of 2024, significantly up from $22.8 million in the same period of 2023 [101]. - Net cash used in investing activities decreased by $4.2 million in the first half of 2024, with capital expenditures at $5.6 million compared to $8.8 million in the prior year [103]. - Net cash used in financing activities increased to $61.1 million in the first half of 2024 from $14.4 million in the same period of 2023 [104]. - The company had $114.6 million in borrowings outstanding on the term loan facility and $62.0 million on the revolving credit facility as of June 30, 2024 [106]. - The company has repurchased a total of 6.1 million shares of common stock for $162.6 million under a $200.0 million share repurchase program [108]. Market and Operational Challenges - The company expects ongoing supply chain challenges and inflationary pressures to impact results through 2024 [86]. - The company is experiencing higher manufacturing and operating costs due to inflationary pressures and ongoing supply chain challenges [106]. - International sales accounted for approximately 44% of consolidated net sales during both the six months ended June 30, 2024, and 2023 [85]. - The company derived approximately 84% of its revenues from single-use products, indicating a strong recurring revenue stream [85].

Core Viewpoint - Conmed (CNMD) reported a revenue increase of 4.6% year-over-year for Q2 2024, with earnings per share (EPS) also showing improvement compared to the previous year [1] Revenue Performance - Total revenue for the quarter was $332.1 million, slightly below the Zacks Consensus Estimate of $334.56 million, resulting in a revenue surprise of -0.74% [1] - Domestic revenue reached $185.40 million, exceeding the average estimate of $183.93 million, marking a year-over-year increase of 6.1% [3] - International revenue was $146.70 million, falling short of the average estimate of $151.07 million, with a year-over-year increase of 2.6% [4] Segment Performance - Net sales in Orthopedic Surgery were $139.50 million, below the estimated $140.96 million, reflecting a year-over-year decrease of 0.9% [5] - Net sales in General Surgery amounted to $192.60 million, surpassing the average estimate of $189.61 million, with a year-over-year increase of 8.9% [6] - Net sales for Single-use Products were $279.30 million, exceeding the average estimate of $276.53 million, representing a year-over-year increase of 5.5% [7] - Net sales in Capital Products were $52.80 million, below the estimated $58.45 million, showing a year-over-year decrease of 0.2% [8] Stock Performance - Conmed's shares have returned +3.7% over the past month, contrasting with a -0.4% change in the Zacks S&P 500 composite [8] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [8]

Core Viewpoint - Conmed (CNMD) reported quarterly earnings of $0.98 per share, exceeding the Zacks Consensus Estimate of $0.92 per share, and showing an increase from $0.83 per share a year ago, representing an earnings surprise of 6.52% [1] Financial Performance - The company posted revenues of $332.1 million for the quarter ended June 2024, which was below the Zacks Consensus Estimate by 0.74%, compared to $317.65 million in the same quarter last year [2] - Over the last four quarters, Conmed has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Conmed shares have declined approximately 36.5% since the beginning of the year, contrasting with the S&P 500's gain of 14% [3] - The current Zacks Rank for Conmed is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $335.32 million, and for the current fiscal year, it is $4.30 on revenues of $1.34 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may change following the recent earnings report [6] Industry Context - The Medical - Dental Supplies industry, to which Conmed belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - The performance of Conmed's stock may also be influenced by the overall outlook for the industry [8]

Financial Performance - Q2 2024 - Worldwide revenue reached $332.1 million, representing a 5.2% increase in constant currency[11] - General Surgery revenue grew by 9.4% in constant currency[12] - Orthopedic Surgery revenue decreased by 0.1%[12] - Single-use products saw a 6.2% revenue increase[12] - GAAP EPS was $0.96, a 123.3% increase year-over-year, while adjusted EPS was $0.98, an 18.1% increase[12] Financial Performance - June 2024 YTD - Worldwide revenue totaled $644.4 million, a 5.5% increase in constant currency[14, 15] - General Surgery revenue increased by 8.8% in constant currency[15] - Domestic revenue grew by 6.6%, while international revenue increased by 4.1%[15] - Single-use products revenue grew by 6.2%, and capital products revenue increased by 1.8%[15] - GAAP EPS was $1.59, a 224.5% increase year-over-year, while adjusted EPS was $1.78, a 19.5% increase[15] Market Opportunities - Orthopedics market represents a large opportunity, with one market share point worth ~$52 million in Sports Medicine & Biologics, ~$35 million in Capital Equipment, and ~$49 million in Foot & Ankle[9] - General Surgery market also presents significant potential, with one market share point valued at ~$16 million in Access, ~$32 million in Energy, ~$17 million in Instruments, ~$32 million in Endoscopic Technologies, and ~$9 million in Critical Care[10] 2024 Financial Guidance (Revised) - Revenue is projected to be between $1.305 billion and $1.315 billion, representing ~5% to ~6% growth in constant currency[17]

| --- | --- | --- | --- | |-------|-------|-------|------------------------------------------------| | | | | NEWS RELEASE | | | | | CONTACT : | | | | | CONMED Corporation | | | | | Todd W. Garner Chief Financial Officer | | | | | 727-214-2975 | | | | | ToddGarner@conmed.com | CONMED Corporation Announces Second Quarter 2024 Financial Results Largo, Florida, July 31, 2024 – CONMED Corporation (NYSE: CNMD) today announced financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Highli ...

Core Viewpoint - The upcoming earnings report for Conmed is anticipated to show a year-over-year increase in earnings and revenues, with the stock's movement largely dependent on the actual results compared to expectations [13]. Earnings Expectations - Conmed is expected to report quarterly earnings of $0.92 per share, reflecting a year-over-year increase of +10.8% [2]. - Revenues are projected to be $334.56 million, which is a 5.3% increase from the same quarter last year [3]. Estimate Revisions and Predictions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their views [4]. - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [9]. Historical Performance - In the last reported quarter, Conmed was expected to post earnings of $0.74 per share but exceeded expectations with earnings of $0.79, resulting in a surprise of +6.76% [11]. - Over the past four quarters, Conmed has beaten consensus EPS estimates three times [19]. Current Stock Rating - Conmed currently holds a Zacks Rank of 4, indicating a "Sell" rating, which complicates the prediction of an earnings beat [10][17].

CONMED Corporation (CNMD) delivered adjusted earnings per share (EPS) of $0.79 in first-quarter 2024, which beat the Zacks Consensus Estimate of $0.74 by 6.8%. The bottom line improved 19.7% from the year-ago quarter’s level.GAAP EPS for the quarter was 63 cents compared with 6 cents per share in the year-ago period.The company’s shares have lost 25.8% in the past six months against the industry’s rise of 10.0%. The broader S&P 500 Index has gained 23% in the same time frame.Image Source: Zacks Investment R ...