CONMED (CNMD)

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CONMED Q2 Earnings & Revenues Beat Estimates, 2025 Outlook Raised
ZACKS· 2025-07-31 18:26
Core Insights - CONMED Corporation (CNMD) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.15, exceeding the Zacks Consensus Estimate of $1.13 by 1.8%, and reflecting a 17.3% year-over-year improvement [1] - The company also raised its 2025 EPS guidance to a range of $4.40-$4.55, up from the previous range of $4.31-$4.46, indicating strong operational performance [11] Revenue Performance - CONMED's total revenues for the quarter reached $342.3 million, marking a 3.1% increase year-over-year and surpassing the Zacks Consensus Estimate by 0.8% [2] - Revenue growth was primarily driven by high-growth product areas such as BioBrace, AirSeal, and Foot & Ankle, despite some supply constraints and international market softness [2][13] Segment Analysis - The Orthopedic Surgery segment generated revenues of $140.7 million, a 0.9% increase year-over-year, with a slight decline of 0.8% in the U.S. but a 1.9% increase in international markets [3] - The General Surgery segment reported revenues of $201.6 million, up 4.7% year-over-year, with U.S. sales increasing by 4.3% and international sales rising by 5.7% [4] Geographic Sales Breakdown - U.S. sales totaled $190.6 million, reflecting a 2.8% year-over-year increase, while international sales amounted to $151.7 million, up 3.4% year-over-year [5] Profitability Metrics - Adjusted gross profit improved by 5.3% year-over-year to $193.4 million, with a gross margin increase of 120 basis points to 56.5% [6] - Adjusted operating income rose to $45.1 million from $39.8 million in the prior-year quarter, resulting in an operating margin of 15.7%, up 110 basis points [6] Financial Position - At the end of the second quarter, CONMED had a cash balance of $33.9 million, down from $35.5 million in the previous quarter [7] Future Guidance - The company raised its revenue guidance for 2025 to a range of $1.356 billion to $1.378 billion, with the Zacks Consensus Estimate at $1.37 billion [10] - For the third quarter of 2025, CONMED expects reported sales between $330 million and $337 million, with adjusted EPS estimated between $1.03 and $1.08 [11] Strategic Outlook - CONMED maintains a positive long-term growth outlook, targeting mid- to high-single-digit revenue increases through strategic drivers such as AirSeal, Buffalo Filter, BioBrace, and Foot & Ankle [14] - The company is focused on transforming its supply chain into a strategic asset to enhance procurement, planning, and production efficiency [14]
CONMED (CNMD) - 2025 Q2 - Quarterly Report
2025-07-31 13:25
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (727) 392-6464 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act For the quarterly period ended Commission File Number June 30, 2025 001-39218 CONMED CORPORATION (Exact name of the reg ...
Compared to Estimates, Conmed (CNMD) Q2 Earnings: A Look at Key Metrics
ZACKS· 2025-07-31 00:01
Core Insights - Conmed reported revenue of $342.35 million for the quarter ended June 2025, reflecting a 3.1% increase year-over-year and a surprise of +0.81% over the Zacks Consensus Estimate of $339.59 million [1] - The company's EPS for the quarter was $1.15, up from $0.98 in the same quarter last year, with an EPS surprise of +1.77% compared to the consensus estimate of $1.13 [1] Revenue Breakdown - Domestic revenue reached $190.6 million, exceeding the average estimate of $186.19 million, marking a year-over-year increase of +2.8% [4] - International revenue was reported at $151.7 million, slightly below the estimated $153.68 million, but still showing a +3.4% increase year-over-year [4] - Net sales in Orthopedic Surgery amounted to $140.7 million, surpassing the average estimate of $139.41 million, with a year-over-year change of +0.9% [4] - Capital Products net sales were $44.5 million, falling short of the $50.63 million estimate, representing a significant year-over-year decline of -15.7% [4] - Single-use Products generated $297.8 million in net sales, exceeding the average estimate of $289.24 million, with a year-over-year increase of +6.6% [4] - General Surgery net sales were reported at $201.6 million, slightly above the estimated $200.46 million, reflecting a +4.7% change compared to the previous year [4] Stock Performance - Conmed's shares have returned -7% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]
CONMED (CNMD) - 2025 Q2 - Earnings Call Transcript
2025-07-30 21:30
Financial Data and Key Metrics Changes - Total sales for Q2 2025 were $342 million, slightly above the high end of guidance, with year-over-year growth of 3.1% as reported and 2.9% in constant currency [6][19] - Adjusted net income for Q2 was $35.6 million, an increase of 16.4% year-over-year, and adjusted diluted net earnings per share were $1.15, up 17.3% year-over-year [7][22] - Adjusted gross margin for Q2 was 56.5%, which is 120 basis points higher than the prior year [20] Business Line Data and Key Metrics Changes - Worldwide general surgery sales grew by 4.4%, while worldwide orthopedic sales increased by 0.8% year-over-year [6][19] - AirSeal remains the largest contributor to general surgery growth, with a recurring revenue profile of 92% [8] - Buffalo Filter experienced double-digit growth, supported by legislative adoption and new product introductions [10] Market Data and Key Metrics Changes - U.S. general surgery sales grew by 4.3%, while international general surgery sales increased by 4.7% [19] - U.S. orthopedic sales decreased by 0.8%, while international orthopedic sales grew by 1.8% [19] - The global smoke evacuation market is estimated to be approximately $300 million today, with potential growth to $2 billion in the coming years [11] Company Strategy and Development Direction - The company is focused on building a stronger operational foundation to support long-term growth and deliver value [14] - Key priorities include stabilizing and scaling operations, driving efficiencies, and building a high-performance supply chain [15][16] - The company aims to maintain a strong balance sheet and reduce debt, expecting the leverage ratio to fall below 3.0 by the end of 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in business fundamentals and long-term strategy, actively optimizing the portfolio towards higher margin opportunities [17] - The company anticipates gradual improvement in growth rates in the second half of the year, with expectations of lower capital headwinds [43] - Management noted that supply chain challenges are being addressed, with expectations of a significantly improved position by the end of the year [33] Other Important Information - The company is committed to maintaining a strong balance sheet and reducing debt, with a focus on higher margin, high growth opportunities [17][16] - Capital expenditures in Q2 were $5.7 million, compared to $3.6 million a year ago [23] Q&A Session Summary Question: Has there been increased competition in the Buffalo Filter market? - Management noted that there have not been new players entering the market, and competition remains the same despite legislative tailwinds [30] Question: What is the current status of supply chain constraints and Salesforce expansion? - Management indicated progress in resolving supply chain issues and mentioned that sales professionals are typically added dynamically throughout the year [32][34] Question: How is the capital market performing, and what trends are being observed? - Management stated that capital demand from hospitals remains strong, but supply chain challenges have impacted capital flow [38] Question: How does the company view its share position in orthopedics amid supply constraints? - Management acknowledged a loss of market share but emphasized ongoing innovation and the strength of the Biobrace platform [40][41] Question: Can you clarify the guidance for the next two quarters? - Management expects gradual improvement in growth rates and has raised the bottom end of the revenue guidance while keeping the top end the same [43][44] Question: What factors contributed to the increase in EPS guidance? - The increase in EPS guidance was attributed to improvements in margins, currency effects, and operational performance [45]
CONMED (CNMD) - 2025 Q2 - Earnings Call Presentation
2025-07-30 20:30
July 30, 2025 Investor Presentation Q2 2025 Earnings Pat J. Beyer President and Chief Executive Officer Todd W. Garner Executive Vice President and Chief Financial Officer Forward-Looking Information This presentation may contain forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward- looking statements herein or in previous disclosures. F ...
CONMED (CNMD) - 2025 Q2 - Quarterly Results
2025-07-30 20:17
NEWS RELEASE CONTACT: 2025 Outlook Based on current foreign currency exchange rates, the Company now expects revenue currency headwinds to be immaterial, compared to 50 to 70 basis points of headwind previously. As a result of the Company's updated foreign currency expectations and its second quarter performance, full-year reported revenue is now expected to be between $1.356 billion and $1.378 billion, compared to the prior guidance range of between $1.350 billion and $1.378 billion. The Company now expect ...
Conmed (CNMD) is a Top-Ranked Value Stock: Should You Buy?
ZACKS· 2025-06-04 14:46
Company Overview - CONMED Corporation is a major medical products manufacturer specializing in surgical instruments and devices for minimally invasive procedures and monitoring [12] - The company is headquartered in Utica, N.Y., employs approximately 3,600 individuals, and operates several manufacturing facilities [12] Investment Ratings - CONMED has a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating a moderate investment outlook [12] - The company also has a Value Style Score of A, attributed to attractive valuation metrics such as a forward P/E ratio of 12.88, which may appeal to value investors [13] Earnings Estimates - For fiscal 2025, three analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.07 to $4.42 per share [13] - CONMED has demonstrated an average earnings surprise of 10.4%, suggesting a positive trend in earnings performance [13] Investment Considerations - With a solid Zacks Rank and top-tier Value and VGM Style Scores, CONMED is recommended for investors' consideration [13]
CONMED (CNMD) - 2025 Q1 - Quarterly Report
2025-05-01 15:07
Financial Performance - Net sales increased by 2.9% to $321.3 million for the three months ended March 31, 2025, compared to $312.3 million in the same period of 2024[89] - Orthopedic surgery sales grew by 2.5% to $138.3 million, driven by growth in procedure-specific, foot and ankle, and BioBrace product offerings[90] - General surgery sales increased by 3.2% to $183.0 million, primarily due to growth in AirSeal, Buffalo Filter, and biliary product offerings[90] - Gross profit margin improved by 20 basis points to 55.3% for the three months ended March 31, 2025, compared to 55.1% in the same period of 2024[88] Expenses - Selling and administrative expenses rose to $148.8 million, representing 46.3% of net sales, an increase of 680 basis points from 39.5% in the prior year[92] - Research and development expenses decreased to $12.9 million, accounting for 4.0% of net sales, down from 4.4% in the same period of 2024[94] - Interest expense decreased to $8.3 million, with a weighted average interest rate of 2.90%, down from 3.18% in the previous year[95] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 21.3%, compared to 22.5% in the same period of 2024[97] - The company was in full compliance with covenants and restrictions of its senior credit agreement as of March 31, 2025[109] Sales and Market - International sales accounted for approximately 43% of consolidated net sales during the three months ended March 31, 2025[83] - There have been no significant changes in primary market risk exposures during the three months ended March 31, 2025[113] Operational Challenges - The company anticipates ongoing supply chain challenges and higher manufacturing costs due to inflation through 2025[84] - The company is experiencing higher manufacturing and operating costs due to inflationary pressures and ongoing supply chain challenges[105] Cash Flow and Capital Management - The net working capital position was $355.9 million as of March 31, 2025, with net cash provided by operating activities increasing to $41.5 million from $29.1 million year-over-year[102] - Capital expenditures rose to $3.8 million in the three months ended March 31, 2025, compared to $2.0 million in the same period a year ago[103] - Net cash used in financing activities increased to $28.4 million in the three months ended March 31, 2025, up from $17.0 million in 2024[104] - The company repaid $14.6 million on its term loan during the three months ended March 31, 2025, and paid $7.2 million in contingent consideration related to the Biorez acquisition[108] - As of March 31, 2025, there were $100.0 million in borrowings outstanding on the term loan facility, with no borrowings under the revolving credit facility and available borrowings of $583.4 million[106] - Management believes cash flow from operations will be adequate to meet anticipated operating working capital requirements and capital expenditures in the foreseeable future[104] Shareholder Returns - The Board of Directors authorized a $200.0 million share repurchase program, with $162.6 million spent to repurchase 6.1 million shares by March 31, 2025[111]
CNMD Stock Up On Q1 Earnings & Sales Beat, Raised 2025 Outlook
ZACKS· 2025-05-01 14:15
Core Insights - CONMED Corporation (CNMD) reported first-quarter 2025 adjusted earnings per share (EPS) of 95 cents, exceeding the Zacks Consensus Estimate of 81 cents by 17.3% and showing a 20.3% improvement year over year [1] - The company's revenues totaled $321.3 million, reflecting a 2.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.4% [1][2] Revenue Breakdown - Revenues in the Orthopedic Surgery segment reached $138.3 million, up 2.5% year over year, with a 3.9% increase at constant exchange rates (CER) [3] - The General Surgery segment generated revenues of $183 million, marking a 3.2% year-over-year increase and a 3.8% increase at CER [4] - U.S. sales totaled $183.8 million, up 4.2% year over year, while international sales amounted to $137.5 million, up 1.2% year over year on a reported basis and up 3.4% at CER [5] Margin and Expenses - Adjusted gross profit improved 3.4% year over year to $181.2 million, with a gross margin of 56.4%, an increase of 80 basis points [6] - Selling and administrative expenses rose 20.7% year over year to $148.8 million, while research and development expenses decreased 4.8% to $12.9 million [6] Financial Position - The company ended the first quarter with a cash balance of $34.5 million, up from $24.5 million in the previous quarter [7] - Cash flow from operations was $41.5 million, compared to $29.1 million in the fourth quarter of 2024 [7] 2025 Guidance - CONMED raised its revenue guidance for 2025, now expecting full-year revenues between $1.35 billion and $1.378 billion, reflecting lower foreign exchange headwinds [9] - The adjusted EPS guidance for 2025 is now in the range of $4.45-$4.60, up from the previous range of $4.25-$4.40 [10] - For the second quarter of 2025, reported sales are expected to be between $335 million and $340 million, with adjusted EPS estimated between $1.10 and $1.15 [11] Market Performance and Outlook - CONMED shares rose 3.4% in after-hours trading following the earnings report, indicating positive market reception [12] - The company remains optimistic about 2025, focusing on growth in minimally invasive procedures and specific product lines such as AirSeal and BioBrace [15] - Supply chain issues are improving, with a decline in backordered SKUs and anticipated annual savings of at least $20 million [16] Tariff Impact - CONMED estimates a negative impact of $5.5 million in 2025 due to tariffs, primarily from China and Europe, and is actively working on mitigation strategies [18]
Compared to Estimates, Conmed (CNMD) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-05-01 00:05
Core Viewpoint - Conmed (CNMD) reported a revenue of $321.26 million for the quarter ended March 2025, marking a year-over-year increase of 2.9% and exceeding the Zacks Consensus Estimate by 2.42% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.95, compared to $0.79 a year ago, resulting in an EPS surprise of 17.28% over the consensus estimate of $0.81 [1] - The stock has returned -13.9% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change, and currently holds a Zacks Rank 3 (Hold) [3] Revenue Breakdown - Domestic revenue reached $183.80 million, surpassing the two-analyst average estimate of $175.66 million, with a year-over-year change of +4.2% [4] - International revenue was $137.50 million, slightly below the average estimate of $138.31 million, reflecting a year-over-year change of +1.2% [4] - Net sales in Orthopedic Surgery totaled $138.30 million, exceeding the average estimate of $125.60 million, with a year-over-year increase of +2.5% [4] - Net sales in General Surgery were $183 million, slightly above the average estimate of $182.04 million, showing a year-over-year change of +3.2% [4] - Net sales of Single-use Products amounted to $276.30 million, surpassing the average estimate of $268.71 million, with a year-over-year change of +4.4% [4] - Net sales of Capital Products were $45 million, slightly below the average estimate of $45.25 million, indicating a year-over-year decline of -5.5% [4]