Q1 Rundown: BD (NYSE:BDX) Vs Other Surgical Equipment & Consumables - Diversified Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how surgical equipment & consumables - diversified stocks fared in Q1, starting with BD (NYSE:BDX).

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%.

While some surgical equipment & consumables - diversified stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.

Weakest Q1: BD (NYSE:BDX)

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. This print fell short of analysts’ expectations by 1.5%. Overall, it was a slower quarter for the company with a miss of analysts’ constant currency revenue estimates and a slight miss of analysts’ full-year EPS guidance estimates.

"Amid a difficult operating environment impacting near-term organic revenue growth, our Q2 results reflect the strength of our business model and ability to exceed our earnings expectations through quality gross margin improvement," said Tom Polen, chairman, CEO and president of BD.

BD scored the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 2.1% since reporting and currently trades at $177.08.

Read our full report on BD here, it’s free.

Best Q1: CONMED (NYSE:CNMD)

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 achieved the highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $50.06.

Is now the time to buy CONMED? Access our full analysis of the earnings results here, it’s free.

Zimmer Biomet (NYSE:ZBH)

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, exceeding analysts’ expectations by 0.7%. Still, it was a slower quarter as it posted a miss of analysts’ full-year EPS guidance estimates.

Zimmer Biomet delivered the slowest revenue growth in the group. As expected, the stock is down 7.8% since the results and currently trades at $94.40.

Read our full analysis of Zimmer Biomet’s results here.

Solventum (NYSE:SOLV)

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 beat analysts’ expectations by 2.7%. It was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.

Solventum pulled off the biggest analyst estimates beat among its peers. The stock is up 9.4% since reporting and currently trades at $73.

Read our full, actionable report on Solventum here, it’s free.

STERIS (NYSE:STE)

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 result met analysts’ expectations. Overall, it was a strong quarter as it also put up a narrow beat of analysts’ full-year EPS guidance estimates and a decent beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $225.79.

Read our full, actionable report on STERIS here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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