CONMED (US:CNMD) ZACKSยท2025-05-01 14:15Core 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]