Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at CONMED (NYSE:CNMD) and the best and worst performers in the surgical equipment & consumables - diversified industry.
The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability.
Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly.
The 5 surgical equipment & consumables - diversified stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.4% since the latest earnings results.
Weakest Q4: CONMED (NYSE:CNMD)
Founded in 1970, CONMED (NYSE:CNMD) designs, manufactures, and sells surgical and patient care products, specializing in minimally invasive solutions for orthopedic, general, and endoscopic surgery.CONMED reported revenues of $345.9 million, up 5.8% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates.
“2024 was a year of solid sales and earnings growth but was also challenging as we navigated persistent supply challenges for parts of our business. I am pleased with our progress in the fourth quarter, particularly with respect to our improved profitability,” commented Patrick J. Beyer, CONMED’s President and Chief Executive Officer.
The stock is down 22.4% since reporting and currently trades at $57.70.
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Best Q4: BD (NYSE:BDX)
Founded in 1897, Becton, Dickinson and Company (NYSE:BDX) is a medical technology company that manufactures and sells a wide range of medical devices, instrument systems, and laboratory chemicals.BD reported revenues of $5.17 billion, up 9.8% year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ constant currency revenue estimates.
BD pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.1% since reporting. It currently trades at $225.12.
Zimmer Biomet (NYSE:ZBH)
Founded in 1927 as a manufacturer of aluminum splints, Zimmer Biomet (NYSE) designs and manufactures orthopedic implants, surgical instruments, and related medical technology solutions for joint replacement, spine, and dental applications.Zimmer Biomet reported revenues of $2.02 billion, up 4.3% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
As expected, the stock is down 3.9% since the results and currently trades at $103.99.
Solventum (NYSE:SOLV)
Founded in 1985, Solventum (NYSE:SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.Solventum reported revenues of $2.07 billion, up 1.9% year on year. This result surpassed analysts’ expectations by 1.2%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
Solventum had the slowest revenue growth among its peers. The stock is down 6.3% since reporting and currently trades at $78.05.
STERIS (NYSE:STE)
Founded in 1985, Steris (NYSE:STE) provides infection prevention, sterilization, and surgical support products for the healthcare, pharmaceutical, and research industries to ensure safety and operational efficiency.STERIS reported revenues of $1.37 billion, up 5.6% year on year. This print lagged analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as it also logged full-year EPS guidance in line with analysts’ estimates.
STERIS had the weakest performance against analyst estimates among its peers. The stock is up 3.7% since reporting and currently trades at $228.81.
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This content was originally published on Stock Story
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