ConMed Corporation (NYSE: CNMD) reported that sales increased nearly 22 percent in the first quarter of 2023 as surgical-procedure volumes grew, pushing the medical-device manufacturer to increase its revenue guidance for the full year. ConMed’s net income for the quarter was $1.8 million, down from $14.9 million for the same quarter a year ago, and […]
ConMed Corporation (NYSE: CNMD) reported that sales increased nearly 22 percent in the first quarter of 2023 as surgical-procedure volumes grew, pushing the medical-device manufacturer to increase its revenue guidance for the full year.
ConMed’s net income for the quarter was $1.8 million, down from $14.9 million for the same quarter a year ago, and earnings per share decreased 87.2 percent from 41 cents per share to 6 cents per share.
“Overall, I’m very encouraged by the quarter and the company’s performance,” President/CEO Curt Hartman said during an April 26 conference call with investors. “We were able to ship the warehouse-related backlog, benefited from increased surgical procedure volumes and staffing-level improvements, [and] saw incremental improvements to global supply-chain constraints..”
Hartman said he’s pleased with the positive results of two acquisitions in 2022. ConMed acquired In2Bones Global, Inc. and Biorez, Inc. last year. Memphis–based In2Bones Global, Inc., develops, manufactures, and distributes medical devices such as implants, fracture systems, biologics, and related hardware for the treatment of disorders and injuries to the hand, wrist, elbow, foot, and ankle. Based in New Haven, Connecticut, Biorez is a medical-device startup focused on advancing the healing of soft tissue using its proprietary BioBrace Implant technology.
“While still early, both of these transactions have lived up to and exceeded our expectations, and we remain convinced it will be transformative to our overall revenue and margin performance in the years ahead,” he said.
Based on its first-quarter results, ConMed boosted its revenue guidance for the full year, now expecting revenue between $1.205 billion and $1.25 billion, up from a range of $1.17 billion and $1.22 billion. The company’s forecast for earnings per share increased from a range of $3.20 to $3.45 per share to a new range of $3.30 to $3.50 per share.
Analysts took note of the ConMed improvements.
“ConMed exited the first quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark,” a Zacks Research report noted. The manufacturer made a good recovery from fourth-quarter 2022 shipping delays and had strong order flow. “However, rising costs of goods and higher operating expenses completely offset strong top-line growth, which led to a decline in earnings,” Zacks said.
ConMed’s stock price closed at $124.88 on May 2. That’s up nearly 41 percent year to date.
ConMed manufactures surgical devices and equipment for minimally invasive procedures for surgical areas including orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery, and gastroenterology. The company moved its corporate headquarters from 525 French Road in New Hartford to Largo, Florida in 2021. It maintains manufacturing, finance, human resources, legal, and other corporate functions at its New Hartford facility.