On Mar 6, 2013, we retained
) at Neutral after the company beat Zacks Consensus Estimates for
earnings and revenue for fourth quarter 2012.
Why the Retention?
CONMED released its results for the fourth quarter on Feb 14.
The company posted adjusted earnings per share of 52 cents per
share, better than the Zacks Consensus Estimate of earnings of 50
cents a share. Revenues in the reported quarter surged 8.4% (7.8%
in constant currency) year over year to $201.2 million, beating
the Zacks Consensus Estimate of $200 million.
Over the past 30 days, the Zacks Consensus Estimate for 2013
has remained static at $1.85. For 2014, the Zacks Consensus
Estimate has dropped by a penny to $2.01 during the same
CONMED expects adjusted earnings in a range of 42 cents to 47
cents for the first quarter of 2013. Revenues are projected to
remain in the band of $192 million and $198 million.
CONMED reiterated its outlook for 2013. Revenues are
anticipated between $785 million and $795 million in 2013. CONMED
expects adjusted earnings to be in the band of $1.80 and $1.90
per share for 2013, reflecting about 5% growth in earnings per
CONMED derives roughly 80% of its total revenues from
single-use disposable products, which remain the mainstay of its
business. The balance 20% of revenue comes from sales of capital
equipment which creates demand for single-use items in a
'razor-razor blade model'. A large percentage of CONMED's
products are designed for minimally invasive surgery, a trend
that is extremely popular these days.
Other Stocks to Consider
We currently have a Zacks Rank #4 (Sell) on CONMED. We are
more positive about
Becton, Dickinson and Company
The Cooper Companies Inc.
Henry Schein, Inc.
) each of which carry a Zacks Rank #2 (Buy) and are expected to
BECTON DICKINSO (BDX): Free Stock Analysis
CONMED CORP (CNMD): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
HENRY SCHEIN IN (HSIC): Free Stock Analysis
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