Core Insights - CONMED Corporation (CNMD) reported adjusted earnings per share (EPS) of $1.08 for Q3 2025, reflecting a 2.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.9% [1] - The company’s revenues reached $337.9 million in Q3 2025, marking a 6.7% year-over-year growth and exceeding the Zacks Consensus Estimate by 0.4% [2][7] - Gross profit decreased by 7.2% year-over-year to $166.1 million, with gross margin contracting by 736 basis points to 49.2% [6][7] Revenue Breakdown - Revenues from Orthopedic Surgery totaled $138.2 million, up 5.9% year-over-year, driven by strong clinical adoption of BioBrace [3] - General Surgery revenues were $199.7 million, reflecting a 7.3% year-over-year increase [4] - Domestic revenues amounted to $194 million, up 5.9% year-over-year, while international revenues reached $143.9 million, up 7.8% [5] Margin Analysis - Operating margin fell significantly by 1723 basis points to 3.5%, with total operating profit dropping 81.9% year-over-year to $11.9 million [8][7] - Selling and administrative expenses surged by 40.7% year-over-year to $140.3 million, while research and development expenses increased by 2.5% to $13.9 million [8] Financial Position - At the end of Q3 2025, CONMED had a cash balance of $38.9 million, up from $33.9 million at the end of Q2 2025, and long-term debt decreased to $853 million from $881.1 million [9] Guidance - For 2025, CONMED narrowed its revenue outlook to a range of $1.365 billion to $1.372 billion, with adjusted EPS projected between $4.48 and $4.53 [10] Market Outlook - Management expressed optimism regarding the performance of its Orthopedics and General Surgery portfolios, particularly products like BioBrace and Buffalo Filter [12] - Despite the positive revenue growth, the contraction in margins raises concerns about future performance [12]

Core Viewpoint - Merit Medical Systems, Inc. (MMSI) reported strong first-quarter 2025 results with adjusted earnings per share (EPS) of 86 cents, reflecting a 14.7% increase year over year, surpassing the Zacks Consensus Estimate by the same percentage [1][2] Revenue Summary - Total revenues reached $355.4 million, up 9.8% year over year, exceeding the Zacks Consensus Estimate by 0.9% [2] - Revenues at constant exchange rate (CER) increased by 10.9% year over year, while organic revenues rose by 6% [2] - Revenue contributions included $9.2 million from the acquisition of Cook Medical's lead management product portfolio and $6.6 million from EndoGastric Solutions' assets [2] Geographic Performance - U.S. sales were $213.6 million, a 14.8% increase year over year, surpassing projections of $207 million [4] - International sales totaled $141.8 million, up 3.2% year over year, slightly below the projection of $144.4 million [4] - Asia-Pacific revenues were $62.6 million, down 0.5% year over year, while Europe, the Middle East, and Africa revenues were $63.3 million, up 3.7% [5] - Revenues from the Rest of World region were $15.9 million, reflecting a 17.7% increase year over year [6] Segment Performance - The Cardiovascular segment reported revenues of $338.7 million, an 8.1% increase year over year [7] - Peripheral Intervention (PI) revenues were $137.3 million, up 5.5%, while Cardiac Intervention (CI) revenues rose 10.6% to $99.7 million [8] - Custom Procedural Solutions (CPS) revenues declined 1.2% to $47.9 million, while OEM revenues improved 20.5% to $53.8 million [9][10] - Endoscopy devices generated revenues of $16.6 million, a significant increase of 64.2% year over year [10] Margin Analysis - Gross profit increased by 13.4% to $172 million, with gross margin expanding by 151 basis points to 48.4% [11] - Selling, general & administrative expenses rose 13.8% to $107.5 million, while research and development expenses increased by 4.6% to $22.5 million [11] - Adjusted operating profit totaled $42.1 million, reflecting a 17.5% increase, with an adjusted operating margin of 11.8% [12] Financial Position - Cash and cash equivalents at the end of the first quarter were $395.5 million, up from $376.7 million at the end of 2024 [13] - Total long-term debt was $730.7 million, slightly up from $729.6 million at the end of 2024 [13] - Net cash provided by operating activities was $40.6 million, compared to $36.2 million a year ago [13] Guidance - MMSI projects net revenues for 2025 to be between $1.470 billion and $1.490 billion, reflecting an increase of 8.4-9.8% year over year [14] - Cardiovascular segment revenues are expected to be in the range of $1.397 billion to $1.415 billion, while Endoscopy segment revenues are projected between $73 million and $75 million [15][16] - Adjusted EPS for 2025 is now projected to be between $3.29 and $3.42, a decrease from previous guidance [17] Market Reaction and Future Outlook - Shares of MMSI fell nearly 4.9% in after-hours trading following the earnings report [3] - The company announced the U.S. commercial release of its Ventrax Delivery System and the enrollment of the first patient in a study for the Bloom Micro Occluder System, indicating potential growth opportunities [20] - However, lower revenues in the APAC region and CPS revenues were disappointing, with specific challenges noted in the Chinese market [21]