(CNMD) CONMED Analysts Maintain Neutral Rating

March 12th, 2010

We recently maintained our Neutral rating on CONMED Corporation (CNMD) with a target price of $24 based on a P/E of roughly 19.4x our fiscal 2010 EPS estimate of $1.24.

CONMED Corporation reported fourth quarter fiscal 2009 earnings per share of 37 cents, surpassing the Zacks Consensus Estimate of 32 cents and the year-ago earnings of 34 cents. In fiscal 2009, earnings per share were $1.00, lower than the year-ago earnings of $1.54.

Total sales in the fourth quarter increased 6.4% year over year to $190.6 million. Growth was registered across all major business segments.

Arthroscopy sales increased 8.0% year over year to $75.7 million. Powered Surgical Instruments sales increased 10.4% year over year to $40.4 million. Electrosurgery sales increased 6.6% year over year to $25.9 million.

Single-use and reposable revenues increased 5.8% year over year to $141.3 million. Capital equipment sales increased 7.9% year over year to $49.3 million.

Total revenues in fiscal 2009 were $694.7 million, declining roughly 6.4% year over year. Arthroscopy sales declined 7.6% year over year to $269.8 million. Powered Surgical Instruments sales declined 7.5% year over year to $144.0 million. Electrosurgery sales declined 5.5% year over year to $95.0 million.

CONMED ended fiscal 2009 with cash and cash equivalents of roughly $9.2 million, declining 22% year over year. The company had an outstanding debt of approximately $184.4 million at fiscal-end 2009.

CONMED is a major medical products manufacturer specializing in surgical instruments and devices. Its main competitors include Stryker Corporation (SYK) and Smith & Nephew (SNN).

Zacks Investment Research

Stock Blog Hub

(CNMD) CONMED Analysts Maintain Neutral Rating

Author

Keyword Topics

Stock Blog Hub

(CNMD) CONMED Analysts Maintain Neutral Rating

Author

Keyword Topics

Tag Cloud

Share This Post