Core Insights - The article discusses the dual approach of top-down and bottom-up analysis in investment strategies, emphasizing the importance of both macroeconomic indicators and individual company evaluations to identify undervalued securities [2][4][8]. Investment Strategy - The company employs a four-pillar approach, utilizing proprietary tools such as TRIM™ for market decline alerts and TEC™ for recession spotting, alongside bottom-up analysis focusing on fair market value and optimizing entry and exit points [3][4]. - Current hedging strategies are maintained due to recession alerts from TEC™, with short positions and inverse long ETFs being utilized to navigate potential market downturns [5][8]. Economic Outlook - A recession is anticipated due to factors such as an inverted yield curve, weak monetary growth, and rising unemployment, with overall economic growth expected to soften [9][10]. - Population growth in the U.S. is declining, leading to potential long-term economic challenges, as net emigration is now occurring, which has not been seen since 1935 [10][11]. Sector Analysis - Certain sectors, particularly technology, are experiencing overspending, while the housing market is already in decline due to previous excesses [5][6]. - The article highlights that despite potential economic downturns, quality companies may trade at attractive discounts, presenting investment opportunities during periods of market fear [7][8]. Valuation Concerns - The median price-to-earnings ratio for U.S. stocks has reached concerning levels, indicating a lower return outlook for equities, particularly when valuations exceed historical averages [23][24]. - Investment-grade corporate bonds are trading at narrow spreads compared to government bonds, suggesting that they are not cheap either, with high-yield corporate bonds also trading below historical averages [25][26]. Company-Specific Insights - CONMED is highlighted as a potential growth opportunity due to improvements in supply chain issues and innovative products, with a fair market value estimate of $60 [38]. - Superior Plus faces challenges in its propane delivery cost reduction initiative, leading to a stock price near a 20-year low, with a fair market value estimate of $14 [39]. - Uber Technologies is adapting to the threat of autonomous vehicles with new initiatives, while its core business is expected to generate substantial free cash flow, with a fair market value estimate of $110 [42]. - Netflix's strategic decision to withdraw from a bidding war demonstrates prudent capital management, with a focus on its core streaming business, and a fair market value estimate of $140 [43]. - Sanofi's Dupixent is projected to drive earnings growth, but uncertainty looms post-patent expiration, with a fair market value estimate of €100 [44][45].

Core Insights - CONMED Corporation (CNMD) reported adjusted earnings per share (EPS) of $1.43 for Q4 2025, a 6.7% increase year over year, surpassing the Zacks Consensus Estimate by 8.6% [1] - Full-year adjusted EPS was $4.59, reflecting a 10.1% increase from the previous year, also beating the Zacks Consensus Estimate by 2.2% [2] Revenue Performance - Q4 revenues reached $373.2 million, up 7.9% year over year, exceeding the Zacks Consensus Estimate by 1.9% [3] - Full-year revenues totaled $1.37 billion, a 5.2% improvement from the prior year, aligning with the Zacks Consensus Estimate [4] Segment Analysis - Orthopedic Surgery revenues in Q4 were $157.4 million, up 13.2% year over year [5] - General Surgery revenues were $215.8 million, reflecting a 4.3% increase year over year [6] Geographical Breakdown - Domestic revenues in Q4 amounted to $206.2 million, a 1.4% increase year over year [7] - International revenues reached $167 million, up 17% year over year [9] Margin and Expense Analysis - Gross profit for Q4 increased 10.1% year over year to $218.3 million, with gross margin expanding 116 basis points to 58.5% [10] - Total operating profit was $36.6 million, down 30.2% from the previous year, with operating margin contracting 536 basis points to 9.8% [11] Financial Position - Cumulative net cash provided by operating activities at the end of Q4 2025 was $170.7 million, compared to $166.9 million a year ago [12] Future Guidance - For 2026, total reported revenues are expected to be between $1,345 million and $1,375 million, with organic CER revenues projected to grow by 4.5%-6% [13] - Adjusted EPS for 2026 is projected to be in the range of $4.30-$4.45, with the Zacks Consensus Estimate at $4.52 [13] Overall Assessment - CONMED's Q4 results showed better-than-expected performance, with strong revenue growth from both product lines and improved gross margin [14] - Management highlighted strong momentum in high-growth platforms, indicating potential for future growth [15]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 were $373.2 million, a year-over-year increase of 7.9% as reported and 7.1% in constant currency [6] - Full year sales reached $1.375 billion, representing a year-over-year growth of 5.2% as reported and 5.1% in constant currency [6] - Adjusted earnings per share (EPS) for Q4 was $1.43, growing 6.7%, while full year adjusted EPS was $4.59, an increase of 10.1% [6][23] Business Line Data and Key Metrics Changes - Orthopedic sales increased by 12.1% in Q4 and 5.5% for the full year on a constant currency basis [6] - General surgery sales grew by 3.8% in Q4 and 4.7% for the full year in constant currency [6] - U.S. orthopedic sales grew 6.6%, while international orthopedic sales increased 15.7% in Q4 [17] - U.S. general surgery sales declined 0.4%, while international sales increased 14.8% in Q4 [18] Market Data and Key Metrics Changes - International sales grew 15.4% in Q4, while U.S. sales increased by 1.4% [17] - The U.S. market for general surgery faced challenges due to portfolio management and strategic focus on growth drivers [18] Company Strategy and Development Direction - The company plans to exit the gastroenterology product lines to focus on high-growth, high-margin markets such as robotic and laparoscopic surgery [7][8] - The strategy includes stabilizing and scaling operations to build a high-performance supply chain [9] - The company aims to achieve above-market growth by investing in key growth platforms and normalizing supply in sports medicine [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained above-market growth through operational improvements and strategic focus [15] - The company is optimistic about the growth potential of its AirSeal and BioBrace platforms, with expectations of high single-digit to low double-digit growth rates [10][13] Other Important Information - The company suspended its dividend and approved a $150 million share repurchase authorization [15] - The leverage ratio at the end of Q4 was 2.9 times, providing flexibility for innovation and growth [24] Q&A Session Summary Question: Can you discuss the cadence for the rest of the year and any selling day differences? - Management indicated no selling day differences and expected normal seasonality for the med tech calendar [32] Question: What is the status of the CFO search? - The company is actively searching for a new CFO who will focus on shareholder value and be a strong team player [34] Question: Can you clarify the organic revenue numbers presented at the healthcare conference? - The difference in organic revenue numbers was due to final adjustments in the base numbers as the year progressed [37] Question: What drove the upside in orthopedic sales and the downside in general surgery? - The orthopedic sales benefited from a committed sales force and improved supply chain, while general surgery faced challenges due to portfolio management [41][42] Question: How will the GI business be reported going forward? - The GI business will be reported separately, reflecting its exit from the main revenue figures [54] Question: What are the growth trends for AirSeal internationally? - AirSeal continues to perform within expected growth ranges, with opportunities in both laparoscopic and robotic procedures [68]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 were $373.2 million, a year-over-year increase of 7.9% as reported and 7.1% in constant currency [6] - For the full year, sales reached $1.375 billion, representing a year-over-year growth of 5.2% as reported and 5.1% in constant currency [6] - Adjusted earnings per share (EPS) for Q4 were $1.43, growing 6.7%, while full-year adjusted EPS was $4.59, an increase of 10.1% [6][23] Business Line Data and Key Metrics Changes - Orthopedic sales increased by 12.1% in Q4 and 5.5% for the full year on a constant currency basis [6] - General surgery sales grew by 3.8% in Q4 and 4.7% for the full year in constant currency [6] - U.S. orthopedic sales grew 6.6%, while international orthopedic sales increased 15.7% in Q4 [17] - U.S. general surgery sales declined by 0.4%, while international sales increased by 14.8% in Q4 [18] Market Data and Key Metrics Changes - International sales grew 15.4% in Q4, while U.S. sales increased by 1.4% [17] - The decline in U.S. general surgery was attributed to a focus on exiting non-core product lines [18] Company Strategy and Development Direction - The company plans to focus on high-growth, high-margin markets such as robotic and laparoscopic surgery, smoke evacuation, and orthopedic soft tissue repair [7] - A strategic decision was made to exit the gastroenterology product lines to concentrate resources on stronger growth drivers, expected to improve long-term growth margins by approximately 80 basis points [7][8] - The company aims to stabilize and scale its supply chain while building a high-performance, agile supply chain to support sustained innovation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving above-market growth by focusing on core strengths and normalizing supply in sports medicine [15] - The company anticipates continued growth in its AirSeal and BioBrace platforms, with AirSeal expected to deliver high single-digit to low double-digit growth rates [10][13] - The CFO transition is underway, with a focus on maintaining continuity and shareholder value [16] Other Important Information - The company suspended its dividend and approved a $150 million share repurchase authorization, equating to approximately $0.07 EPS in 2026 [15] - Adjusted gross margin for Q4 was 56.6%, down 100 basis points from the prior year, while full-year adjusted gross margin was 56.4%, an increase of 10 basis points [21] Q&A Session Summary Question: Can you discuss the cadence for the rest of the year and any selling day differences? - Management confirmed no selling day differences and indicated that the rest of the year should follow the typical med tech calendar [32] Question: What is the status of the CFO search? - The company is actively searching for a new CFO who will focus on shareholder value and be a strong team player [34] Question: Can you clarify the organic revenue numbers presented at the healthcare conference versus today? - The difference is due to final numbers rolling out, with the current guidance being more precise [37] Question: What drove the upside in orthopedic sales and the downside in general surgery? - The orthopedic sales beat was attributed to committed sales professionals, improving supply chain, and new product approvals, while general surgery faced challenges due to portfolio management [40][42] Question: How will the GI business be reported going forward? - The GI business will be reported separately, reflecting its exit from the main revenue figures [54] Question: What are the growth trends for AirSeal internationally? - AirSeal continues to perform within the expected growth range, with opportunities in both robotic and laparoscopic procedures [68]

Financial Data and Key Metrics Changes - Total sales for Q4 2025 were $373.2 million, a year-over-year increase of 7.9% as reported and 7.1% in constant currency [5] - For the full year, sales were $1.375 billion, representing year-over-year growth of 5.2% as reported and 5.1% in constant currency [5] - Adjusted earnings per share for Q4 were $1.43, growing 6.7%, while full-year adjusted EPS was $4.59, growing 10.1% [5][21] - GAAP net income for Q4 was $16.7 million, down from $33.8 million in Q4 2024, with GAAP earnings per diluted share at $0.54 compared to $1.08 a year ago [19] Business Line Data and Key Metrics Changes - Orthopedic sales increased 12.1% in Q4 and 5.5% for the full year on a constant currency basis [5] - General surgery sales increased 3.8% in Q4 and 4.7% for the full year in constant currency [5] - U.S. orthopedic sales grew 6.6% in Q4, while international orthopedic sales increased 15.7% [16] - U.S. general surgery sales declined 0.4%, while international general surgery sales increased 14.8% [16] Market Data and Key Metrics Changes - International sales grew 15.4% in Q4, while U.S. sales increased 1.4% [15] - The decline in U.S. general surgery was attributed to a focus on non-core areas and strategic portfolio management [16] Company Strategy and Development Direction - The company plans to exit its gastroenterology product lines to focus on high-growth, high-margin markets such as robotic and laparoscopic surgery [6][7] - The strategy includes stabilizing and scaling operations to build a high-performance supply chain [8] - The company aims to deliver sustained above-market growth in its orthopedic portfolio over time [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to return to above-market growth by focusing on core strengths and investing in high-growth platforms [13] - The company is optimistic about the long-term growth potential of its AirSeal and BioBrace products, with expectations of high single-digit to low double-digit growth rates [10][12] Other Important Information - The company suspended its dividend and approved a $150 million share repurchase authorization [12] - The leverage ratio at the end of the year was 2.9 times, providing flexibility for innovation and growth [12] Q&A Session Summary Question: Can you talk about the cadence for the rest of the year and any selling day differences? - Management indicated no selling day differences and expected normal seasonality for the med tech calendar [30] Question: What is the status of the CFO search? - The company is actively searching for a new CFO who will focus on shareholder value and be a strong teammate to the leadership team [32] Question: Can you clarify the organic revenue numbers presented at the healthcare conference versus today? - The difference was due to final numbers rolling out, with the current guidance being more precise [35] Question: What drove the upside in orthopedic sales and the downside in general surgery? - The orthopedic sales beat was attributed to committed sales professionals, improving supply chain, and new product approvals, while general surgery faced challenges due to portfolio management [37][40] Question: How will the GI business be reported going forward? - The GI business will be reported separately as the company moves forward [54]

Q4 2025 Earnings Presentation Pat J. Beyer President and Chief Executive Officer Todd W. Garner Executive Vice President and Chief Financial Officer January 28th, 2026 CONMED Vision Empower healthcare providers worldwide to deliver exceptional outcomes for patients. 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 t ...

CONMED (NYSE:CNMD) FY Conference Summary Company Overview - **Company**: CONMED Corporation - **Industry**: Medical Technology (MedTech) - **CEO**: Pat Beyer - **Conference Date**: January 12, 2026 Key Points Company Vision and Strategy - CONMED aims to empower healthcare providers globally to deliver exceptional patient outcomes, focusing on innovative clinical solutions [1] - The company emphasizes profitability for shareholders and maintains a balanced portfolio: 58% general surgery and 42% orthopedics [2] Financial Performance and Growth Outlook - Revenue for FY 2025 is projected between $1.365 billion and $1.372 billion, with an expected midterm growth rate of 4%-9% [3][4] - Specific growth expectations include: - General surgery: 5%-11% - Orthopedics: 4%-8% - AirSeal and direct smoke evacuation: high single-digit to double-digit growth - Sports medicine: mid-single digits to high single digits [3] Growth Drivers - **AirSeal Portfolio**: Reduces hospital stay and pain, with a market share of 6%-7% in laparoscopy procedures [5][7] - **Buffalo Filter**: Advanced smoke evacuation system projected to grow from $300-$350 million to $1 billion, driven by global legislation and clinical validation [8][9] - **BioBrace**: FDA-approved technology for sports medicine tissue repair, with a focus on mechanical strength and biologic integration [10][11] Strategic Decisions - CONMED exited the GI business to focus on high-margin growth areas, which is expected to impact revenue by $78-$82 million [13][14] - The company is committed to reducing leverage, achieving a target below three ahead of schedule [13] Preliminary Guidance for 2026 - Revenue guidance for 2026 is set at $1.345-$1.375 billion, with adjusted EPS guidance of $4.25-$4.45 [14][15] - The guidance reflects the impact of the GI divestiture and tariffs, which are expected to be headwinds [18][19] Capital Allocation and Share Repurchase - CONMED has suspended its dividend to redirect funds towards share repurchase, with an initial impact of $0.07 on EPS [15][39] - The company remains open to both organic and inorganic growth opportunities, focusing on high-margin, durable assets [36][37] Supply Chain and Operational Challenges - The company has made progress in addressing supply chain issues, particularly in the orthopedic segment, which is expected to improve in 2026 [24] Market Position and Competitive Landscape - CONMED's AirSeal product is a significant growth asset, with a strong attachment rate to surgical robotics [29] - The company is focusing on expanding its presence in the laparoscopic market, which has shown faster growth compared to robotic sales [31] ESG Commitment - CONMED is committed to sustainability and will publish its fourth sustainability report, highlighting its focus on responsible practices [16] Conclusion - CONMED is strategically positioning itself for growth by focusing on high-margin products, optimizing its portfolio, and addressing operational challenges. The exit from the GI business allows for a concentrated effort on its core growth drivers, with a strong emphasis on shareholder returns through share repurchase initiatives.

J.P. Morgan 44th Annual Healthcare Conference Pat J. Beyer President and Chief Executive Officer Todd W. Garner Executive Vice President and Chief Financial Officer January 12th, 2026 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 dis ...

Core Insights - CONMED Corporation (CNMD) is positioned for growth due to the rising adoption of its high-margin platforms like AirSeal, Buffalo Filter, and BioBrace, alongside increasing robotic procedure volumes and the expansion of Ambulatory Surgery Centers (ASCs) [1][4][10] - The company is facing challenges from tariffs impacting gross margins and the launch of Intuitive Surgical's da Vinci 5, which delays AirSeal demand [2][15] Company Performance - CONMED has a market capitalization of $1.28 billion and projects a 3.4% earnings growth over the next five years, with earnings surpassing estimates in the last four quarters, averaging an 8.40% surprise [3][17] - The company reported significant progress in stabilizing its orthopedic supply chain, achieving record manufacturing volumes and reducing critical SKU shortages [11][12] Growth Drivers - Adoption of BioBrace has expanded to over 70 procedures, indicating strong surgeon uptake and versatility in soft-tissue repair applications [4] - AirSeal utilization is increasing due to its clinical benefits, while Buffalo Filter growth is supported by expanding smoke-evacuation mandates [5][10] - The expansion of robotic surgery and ASC penetration presents a meaningful growth opportunity, with incremental AirSeal utilization driven by the redeployment of Intuitive Surgical's Xi systems [6][9] Challenges - Tariffs are reducing gross margins by approximately 20 basis points in Q3, with expectations of a 150 basis point impact in Q4 [13] - The supply-chain recovery is ongoing and is expected to take one to two quarters for normalization, which may temper revenue recovery [14] - The integration of the da Vinci 5 is constraining near-term AirSeal adoption, as hospitals may not need to purchase AirSeal immediately due to the integrated insufflation system [15][16]

Core Viewpoint - CONMED Corporation reported mixed financial results for Q3 2025, with adjusted earnings per share beating estimates but a significant decline in GAAP earnings per share. Revenue growth was driven by strong performance in General Surgery and Orthopedic Surgery product lines, although margins contracted significantly [2][3][4][5][7][8]. Financial Performance - Adjusted earnings per share for Q3 2025 were $1.08, a 2.9% increase year over year, surpassing the Zacks Consensus Estimate by 2.9% [2]. - GAAP earnings per share fell to 9 cents, down 94.3% from $1.57 in the same quarter last year [2]. - Total revenues reached $337.9 million, reflecting a 6.7% year-over-year increase and exceeding estimates by 0.4% [3]. Revenue Breakdown - Orthopedic Surgery revenues were $138.2 million, up 5.9% year over year [4]. - General Surgery revenues totaled $199.7 million, a 7.3% increase year over year [5]. - Domestic revenues were $194 million, up 5.9%, while international revenues were $143.9 million, up 7.8% [6]. Margin Analysis - Gross profit decreased by 7.2% year over year to $166.1 million, with gross margin contracting by 736 basis points to 49.2% [7]. - Selling and administrative expenses rose 40.7% to $140.3 million, while total operating expenses increased 36.1% to $154.2 million [8]. Financial Position - CONMED ended Q3 2025 with a cash balance of $38.9 million, up from $33.9 million at the end of Q2 [9]. - Long-term debt decreased to $853 million from $881.1 million in the previous quarter [9]. - Cumulative net cash from operating activities was $53.7 million, compared to $51.2 million a year ago [9]. Guidance - For 2025, total revenues are now expected to be between $1.365 billion and $1.372 billion, and adjusted earnings per share are projected to be in the range of $4.48 to $4.53 [10]. Market Outlook - Recent estimates for CONMED have shown an upward trend, contributing to a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [11][13].