CONMED -CNMD's Q4 Earnings & Sales Beat Estimates, Stock Down on Weak Outlook

Core Insights - CONMED Corporation (CNMD) reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.34, exceeding the Zacks Consensus Estimate of$ 1.20 by 11.7% and showing a 26.4% improvement year-over-year [1] - The company's revenues for the fourth quarter totaled $345.9 million, reflecting a 5.8% year-over-year increase and surpassing the Zacks Consensus Estimate by 1.4% [2] - For the full year 2024, CNMD's revenues reached$ 1.31 billion, up 5% year-over-year, with adjusted EPS of $4.17, marking a 20.9% increase compared to 2023 [3] Revenue Breakdown - The Orthopedic Surgery segment generated revenues of$ 139 million, a 1.8% increase year-over-year, with U.S. sales improving by 5.2% [4] - The General Surgery segment reported revenues of $206.9 million, up 8.6% year-over-year, with U.S. sales increasing by 7.4% and international sales rising by 11.9% [5] - Total sales in the United States were$ 203.3 million, up 6.8% year-over-year, while international sales amounted to $142.6 million, reflecting a 4.4% increase [6] Margin and Expenses - CNMD's gross profit improved by 8.9% year-over-year to$ 198.3 million, with a gross margin of 57.3%, an increase of 160 basis points [7] - Selling and administrative expenses rose by 12.5% year-over-year to $132.7 million, while research and development expenses decreased by 6.1% to$ 13.2 million [7] - The operating income for the quarter was $52.5 million, compared to$ 50.2 million in the prior-year quarter, with an operating margin of 15.2% [7] Financial Position - CNMD ended the fourth quarter with a cash balance of $24.5 million, down from$ 38.5 million in the previous quarter [8] - Cash flow from operations in the reported quarter was $43.3 million, compared to$ 56.4 million in the fourth quarter of 2023 [9] Future Guidance - For 2025, CNMD expects revenues between $1.34 billion and$ 1.37 billion, indicating a constant-currency growth of approximately 4% to 6% [10] - The company anticipates adjusted EPS for 2025 to be in the range of $4.25 to$ 4.40, with the Zacks Consensus Estimate at $4.41 [10] - CNMD also provided first-quarter 2025 revenue guidance, expecting reported sales between$ 310 million and $316 million [11] Market Reaction - Following the earnings report, CNMD's shares fell by 9.5% in after-market trading, likely due to revenue and EPS guidance for 2025 being below estimates [14] - Despite this, CNMD's shares have increased by 13.1% over the past six months, outperforming the industry growth of 5.2% and the S&P 500 Index's gain of 16.6% [14]