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).

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