CONMED Q3 Sales Slip 0.7% but Organic Growth Hits 6.7%; EPS Guidance Raised
CNMD sits 46% above its 52-week low of $31.44.
Summary
Reported sales fell 0.7% to $335.6 million, but that headline number is distorted by the previously announced GI product exits — organic constant currency growth was 6.7%, with Orthopedics up 7.2% and General Surgery up 6.4% on that basis. Adjusted diluted EPS of $1.04 came in down 3.2% year-over-year, though management said it exceeded internal expectations, while GAAP EPS jumped to $0.66 from $0.09 on a much cleaner cost base (gross margin 56.4% vs 49.2%), and net income was $19.8 million. Guidance was tweaked rather than reset: full-year sales narrowed to $1,360-$1,366 million from $1,358-$1,373 million, and adjusted EPS was raised to $4.54-$4.61 from $4.48-$4.60. Domestic sales remain the soft spot, down 11.0% as reported and up only 0.8% organically, while international grew 13.1%. The quarter follows the July convertible note repurchase and portfolio optimization work that have reshaped the P&L; the 4:30 p.m. ET call today is where management will have to defend the domestic trend and the back-half ramp implied by guidance.
At the time of this announcement, CNMD was trading at $45.76 on NYSE in the Life Sciences sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $31.44 to $53.66. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.