On Jul 4, 2013, we reiterated our Neutral recommendation on
) following its moderate first-quarter results. Although the
company is aggressively trying to curtail costs and leverage
operational activities, weakness in the global healthcare market
BECTON DICKINSO (BDX): Free Stock Analysis
CONMED CORP (CNMD): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
WEST PHARM SVC (WST): Free Stock Analysis
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Why the Retention?
CONMED reported first-quarter 2013 adjusted earnings per share
(excluding one-time expenses) of 45 cents, in line with the Zacks
Consensus Estimate and up 4.7% year over year. The upside was led
by improvement in gross margin. However, revenues in the quarter
dropped 3.8% year over year to $187.0 million. Revenues missed
the Zacks Consensus Estimate of $201 million by 7%.
Following the release of the quarterly results, the Zacks
Consensus Estimate for 2013 remains unchanged at $1.85 per share.
However, the Zacks Consensus Estimate for 2014 increased 3.5% to
CONMED has reshuffled its business segments following the Viking
acquisition. The Viking acquisition further enhances its
portfolio for minimally invasive products. New product launches
should boost sales. Further, the ongoing consolidation and
restructuring activities should result in savings.
However, we are aware that CONMED competes against bigger
companies in a competitive orthopedic surgery market while
capital purchasing environment remains weak. The current
difficult global health care utilization trends are adversely
affecting the business. Pricing and volume pressure also remain
headwinds for the company.
Other Stocks to Consider
The company carries a Zacks Rank #3 (Hold). While we remain on
the sidelines regarding CONMED, companies like
Becton, Dickinson and Company
The Cooper Companies
West Pharmaceutical Services
) are expected to do well in the medical/dental supply industry.
All these stocks carry a Zacks Rank #2 (Buy).