Let’s dig into the relative performance of BD (NYSE: BDX) and its peers as we unravel the now-completed Q2 surgical equipment & consumables - diversified earnings season.

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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.5%.

Thankfully, share prices of the companies have been resilient as they are up 8.1% on average since the latest earnings results.

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 $5.51 billion, up 8.9% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

BD pulled off the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is up 14.3% since reporting and currently trades at $197.

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

Best Q2: 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 $2.08 billion, up 7% year on year, outperforming analysts’ expectations by 1.5%. The business had a strong quarter with an impressive beat of analysts’ full-year EPS guidance estimates and a narrow beat of analysts’ constant currency revenue estimates.

The market seems happy with the results as the stock is up 11.6% since reporting. It currently trades at $101.75.

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

Weakest Q2: 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 $342.3 million, up 3.1% year on year, exceeding analysts’ expectations by 1.2%. It was a satisfactory quarter as it also posted a narrow beat of analysts’ full-year EPS guidance estimates.

CONMED delivered the highest full-year guidance raise but had the slowest revenue growth in the group. Interestingly, the stock is up 5.8% since the results and currently trades at $53.12.

Read our full analysis of CONMED’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 $2.16 billion, up 3.8% year on year. This result topped analysts’ expectations by 1.9%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

The stock is down 2% since reporting and currently trades at $70.57.

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 $1.39 billion, up 8.7% year on year. This number surpassed analysts’ expectations by 2.3%. It was a strong quarter as it also logged a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

STERIS achieved the biggest analyst estimates beat among its peers. The stock is up 10.9% since reporting and currently trades at $245.56.

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

Market Update

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.

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