UTICA — ConMed Corp. (NASDAQ: CNMD) reported on April 27 that it has increased its profit and revenue forecast for the rest of this year, as foreign-exchange rates won’t take as big a bite as previously expected. The Utica–based surgical-device maker now expects net earnings per share in the range of $1.95 to $2.05 for […]
Get Instant Access to This Article
Become a Central New York Business Journal subscriber and get immediate access to all of our subscriber-only content and much more.
- Critical Central New York business news and analysis updated daily.
- Immediate access to all subscriber-only content on our website.
- Get a year's worth of the Print Edition of The Central New York Business Journal.
- Special Feature Publications such as the Book of Lists and Revitalize Greater Binghamton, Mohawk Valley, and Syracuse Magazines
Click here to purchase a paywall bypass link for this article.
UTICA — ConMed Corp. (NASDAQ: CNMD) reported on April 27 that it has increased its profit and revenue forecast for the rest of this year, as foreign-exchange rates won’t take as big a bite as previously expected.
The Utica–based surgical-device maker now expects net earnings per share in the range of $1.95 to $2.05 for 2016, up from its prior guidance of $1.85 to $1.95.
ConMed now anticipates reported 2016 sales in the range of $768 million to $778 million, compared to the previous range of $760 million to $770 million, “due to the updated foreign-exchange impact anticipated for the year.”
The revenue forecast includes constant currency organic-sales growth of 1 percent to 3 percent; sales related to the SurgiQuest acquisition of $55 million to $60 million; and an “updated negative impact of foreign exchange” of $13 million to $15 million, according to its earnings report. ConMed is basing the update on foreign-currency exchange rates as of April 22.
That was the good news. The bad news was ConMed reported a first-quarter net loss of $2.3 million, or 8 cents a share, compared to net earnings of $6.3 million, or 23 cents, in the same quarter a year ago.
Excluding restructuring, business acquisition, and debt refinancing costs, ConMed reported net income of $8.4 million, or 30 cents a share, down nearly 29 percent on a year-over-year basis. Zacks Equity Research said that missed its consensus analysts’ estimate of 40 cents.
ConMed issued its earnings report after the close of trading on April 27. Its stock price declined nearly 7 percent over the first two full trading days after the report.
In its earnings release, ConMed also excluded amortization of intangible assets, which resulted in adjusted first-quarter net earnings of $11.6 million, or 42 cents a share, down about 15 percent from the year-ago period.
ConMed contends that the decline in adjusted net earnings was “largely attributable” to the impact of “unfavorable” foreign-exchange rates, partially offset by a lower tax rate and improved gross margin during the quarter.
The firm generated revenue of more than $181 million during the first quarter, an increase of nearly 2 percent compared to the first quarter of 2015, the company said.
ConMed’s leader expressed optimism about the firm’s financial results and outlook.
“Despite a slow start to the year for capital sales in the international markets, we saw growth in all three of our main product categories domestically, with U.S. orthopedics posting its third consecutive quarter of positive growth,” Curt Hartman, president and CEO of ConMed, said in the company’s earnings report. “We remain confident in our financial outlook for the year as investments in our strategic initiatives and in product development translate into further operating improvements.”
ConMed employs about 3,400 people. It has a direct selling presence in 17 countries and international sales comprise about 50 percent of the company’s total sales.
Contact Reinhardt at ereinhardt@cnybj.com