Surgical Equipment & Consumables – Diversified Stocks Q3 Results: Benchmarking CONMED (NYSE:CNMD)
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the surgical equipment & consumables – diversified industry, including CONMED (NYSE:CNMD) 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%.
In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results.
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 exceeded analysts’ expectations by 1%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ constant currency revenue estimates.
Unsurprisingly, the stock is down 10% since reporting and currently trades at $40.01.
Is now the time to buy CONMED? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ constant currency revenue estimates and an impressive beat of analysts’ revenue estimates.
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