Shares of CONMED Corp. CNMD scaled a new 52-week high of $57.00 on Jun 3, eventually closing a tad lower at $56.93. This represents a strong one-year return of about 26%. The S&P 500 also jumped almost 9% during the same period.
On an average, CONMED has outperformed the Zacks Consensus Estimate by 0.2% over the last four quarters. This Zacks Rank #3 (Hold) stock has a market cap of $1.55 billion and a long-term expected EPS growth rate of 15%.
Key Growth Catalysts
CONMED reported adjusted earnings of 42 cents per share in the first quarter 2015, which beat the Zacks Consensus Estimate by a penny. Net sales of $177.9 million exceeded the Zacks Consensus Estimate of $174 million.
CONMED reiterated its previously announced constant currency sales growth guidance at 1% to 3% for 2015, banking on new product launches and reorganization of certain aspects of the commercial sales organization.
Taking into consideration current exchange rates, CONMED now anticipates full-year revenues in the range of $723–$738 million as against the prior range of $727–$742 million. Adjusted earnings are projected in the band of $1.82–$1.92, in line with the prior guidance.
CONMED plans to combine its domestic Advanced Energy and Endomechanical organizations, which will open up substantial growth opportunities. By leveraging its offerings and infrastructure, the company will be able to provide enhanced customer focus and achieve better top-line performance. However, we believe that this initiative will begin showing results in the second half of 2015.
Estimate Revisions
The Zacks Consensus Estimate for 2015 has remained steady at $1.85 over the past 7 days. Similarly, the consensus estimate for fiscal 2016 remained unchanged at $2.13 over the same period.
Stocks to Consider
Better-ranked stocks in the sector are AmerisourceBergen Corp ABC, Luxottica Group LUX and Merit Medical Systems MMSI. All the companies carry a Zacks Rank #2 (Buy).
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