A month has gone by since the last earnings report for Conmed (CNMD). Shares have lost about 3.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Conmed due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for CONMED Corporation before we dive into how investors and analysts have reacted as of late.
CONMED’s Q1 Earnings and Revenues Beat, Organic Sales Outlook Up
CONMEDposted adjusted earnings per share of 89 cents for the first quarter of 2026, down 6.3% year over year. The figure beat the Zacks Consensus Estimate by 8.5%.
The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.
GAAP earnings per share for the quarter was 45 cents, up 136.8% from the year-ago period’s EPS of 19 cents.
CNMD’s Revenues in Detail
CONMED registered revenues of $317 million in the first quarter, down 1.3% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 2%.
At the constant exchange rate (CER), revenues were up 2.9% year over year.
Per management, the top line was hurt by a $15.5 million decrease in sales from the exit of certain GI products.
CONMED’s Segmental Details
Orthopedic Surgery revenues in the fourth quarter totaled $147.7 million, up 6.8% and 4.5% year over year on a reported basis and at CER, respectively.
The U.S. Orthopedic sales grew 5.5%. Internationally, orthopedic sales increased 7.6% and 3.9% on a reported basis and at CER, respectively.
General Surgery revenues were $169.3 million, down 7.4% on a reported basis and 8.5% at CER year over year.
U.S. General Surgery sales declined 10.4%, while internationally General Surgery sales increased 0.1% but declined 3.8% on a reported basis and at CER, respectively.
The decline in the United States was due to a loss of $15.2 million in sales due to the exit of certain GI products.
CNMD’s Geographical Results
Domestic revenues in the first quarter totaled $173 million, down 5.8% on a reported basis year over year.
International revenues in the first quarter amounted to $144 million, up 4.7% on a reported basis and 1% at CER year over year.
CONMED’s Margin Analysis
In the quarter under review, CNMD’s adjusted gross profit increased 0.4% year over year to $181.9 million. The gross margin expanded 100 basis points (bps) to 57.4%.
Selling & administrative expenses decreased 4.8% year over year to $141.7 million. Research and development expenses rose 26.2% to $16.3 million. Total operating expenses of $158 million decreased 2.3% on a year-over-year basis.
Total adjusted operating profit totaled $32.8 million, reflecting a 10.6% decrease from the year-ago quarter. The operating margin in the first quarter contracted 100 bps to 13.1%.
CNMD’s Financial Position
The company exited the reported quarter with cash and cash equivalents of $35 million compared with $40.8 million a year ago.
Cumulative net cash provided by operating activities at the end of first-quarter 2026 was $13.5 million compared with $41.5 million a year ago.
CONMED’s Guidance
CNMD has updated its outlook for 2026.
For 2026, total reported revenues are expected to be in the range of $1,350 million-$1,375 million compared with previous guidance of $1,345 million-$1,375 million.
Organic CER revenues are expected to lie between $1,331.2 million and $1,350.1 million, reflecting organic CER growth of 5-6.5% over the comparable 2025 period. The company previously expected Organic CER revenues of $1,324 million to $1,344 million.
The company continues to expect adjusted EPS for 2026 in the range of $4.30-$4.45.
CONMED expects revenues to be in the range of $336 million-$340 million for the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in fresh estimates.
VGM Scores
Currently, Conmed has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Conmed has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).