As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the surgical equipment & consumables – diversified industry, including STERIS (NYSE:STE) and its peers.
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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7%.
Thankfully, share prices of the companies have been resilient as they are up 5.4% on average since the latest earnings results.
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE:STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
STERIS reported revenues of $1.46 billion, up 9.9% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ revenue estimates.
STERIS Total Revenue
STERIS achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 8.6% since reporting and currently trades at $264.06.
Is now the time to buy STERIS? Access our full analysis of the earnings results here, it’s free.
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 $2.10 billion, flat year on year, outperforming analysts’ expectations by 1.3%. The business had a strong quarter with a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.
Solventum Total Revenue
The market seems happy with the results as the stock is up 20.8% since reporting. It currently trades at $80.06.
Is now the time to buy Solventum? Access our full analysis of the earnings results here, it’s free.
With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE:BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.
BD reported revenues of $5.89 billion, up 8.3% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ constant currency revenue estimates.
Interestingly, the stock is up 17.6% since the results and currently trades at $207.38.
Read our full analysis of BD’s results here.
With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE:ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.
Zimmer Biomet reported revenues of $2.00 billion, up 9.7% year on year. This result met analysts’ expectations. Aside from that, it was a mixed quarter as it also produced a narrow beat of analysts’ full-year EPS guidance estimates but revenue in line with analysts’ estimates.
Zimmer Biomet had the weakest performance against analyst estimates among its peers. The stock is down 13.5% since reporting and currently trades at $89.29.
With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE:CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.
CONMED reported revenues of $337.9 million, up 6.7% year on year. This print surpassed analysts’ expectations by 1%. Overall, it was a satisfactory quarter as it also logged a narrow beat of analysts’ constant currency revenue estimates.
The stock is down 6.4% since reporting and currently trades at $41.59.
Read our full, actionable report on CONMED here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
