Q1 Rundown: Solventum (NYSE:SOLV) Vs Other Surgical Equipment & Consumables
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Solventum (NYSE:SOLV) 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 Q1. As a group, revenues beat analysts' consensus estimates by 1%.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
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 $2.07 billion, up 2.7% year on year. This print exceeded analysts' expectations by 2.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts' organic revenue estimates and a decent beat of analysts' EPS estimates.
"Our first quarter fiscal year 2025 results reflect solid revenue growth across our business and the positive progress we're making as part of our 3-phased transformation," said Bryan Hanson, chief executive officer of Solventum.
Solventum achieved the biggest analyst estimates beat of the whole group. The stock is up 12.6% since reporting and currently trades at $75.14.
Is now the time to buy Solventum? Access our full analysis of the earnings results here, it's free.
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 $321.3 million, up 2.9% year on year, outperforming analysts' expectations by 2.6%. The business had a very strong quarter with an impressive beat of analysts' full-year EPS guidance estimates and a solid beat of analysts' EPS estimates.
CONMED pulled off the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 15.4% since reporting. It currently trades at $56.57.
Is now the time to buy CONMED? 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 $5.27 billion, up 4.5% year on year, falling short of analysts' expectations by 1.5%. It was a slower quarter as it posted a miss of analysts' constant currency revenue estimates and a slight miss of analysts' full-year EPS guidance estimates.
BD delivered the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 16.4% since the results and currently trades at $173.
Read our full analysis of BD's results here.
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 $1.48 billion, up 4.3% year on year. This print was in line with analysts' expectations. Overall, it was a strong quarter as it also recorded a narrow beat of analysts' full-year EPS guidance estimates and a decent beat of analysts' EPS estimates.
The stock is up 6.6% since reporting and currently trades at $242.10.
Read our full, actionable report on STERIS here, it's free.
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 $1.91 billion, up 1.1% year on year. This number beat analysts' expectations by 0.7%. Aside from that, it was a slower quarter as it recorded a miss of analysts' full-year EPS guidance estimates.
Zimmer Biomet had the slowest revenue growth among its peers. The stock is down 10.1% since reporting and currently trades at $91.99.
Read our full, actionable report on Zimmer Biomet here, it's free.
The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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