ConMed posts nearly 11 percent sales growth in Q3, ups guidance

ConMed Corporation (NYSE: CNMD) recently reported robust third-quarter earnings that pushed company executives to inch up guidance for the company’s full-year earnings.

The medical-device manufacturer — headquartered in Largo, Florida with some operations in New Hartford — reported sales of $304.6 million for the quarter ended Sept. 30. That’s up 10.7 percent over the same quarter last year, with recent acquisitions contributing to that growth, company officials said.

“We’re very pleased with our team’s performance in the third quarter,” Curt R. Hartman, president, CEO, and board chair of ConMed, said during an Oct. 25 conference call with investors and the media.

Bolstered by the double-digit sales growth, ConMed revised its previous guidance for the year, bumping up the lower-end forecast from $1.23 billion to $1.24 billion. The top end remains at $1.26 billion. The manufacturer now forecasts full-year earnings per share between $3.45 and $3.55 per share, instead of $3.40 to $3.55 per share.

ConMed’s net income for the quarter was $15.8 million, or 50 cents per share, down from $46.2 million, or $1.48 a share, in the third quarter of 2022 when the company benefited from a $30.4 million income-tax benefit.

For the nine months ended Sept. 30, ConMed reported net income of $31.4 million on sales of $917.7 million, compared with a net loss of $107.2 million on sales of $794.6 million a year earlier.

In 2022, ConMed acquired Tennessee-based In2Bones Global, Inc., and Connecticut-based Biorez, Inc. Both showed strong sales in the third quarter, with Biorez’s BioBrace product gaining market acceptance, Hartman said.

“Our results today are indicative of our ongoing focus on providing innovative solutions to our customers and the world so that they can treat their patients,” he said.

ConMed’s legacy orthopedic products were hurt by supply constraints during the quarter, with sales lagging. When questioned by analyst Rick Wise with Missouri–based investment and brokerage firm Stifel, Hartman explained that the issue was the lack of availability of a reagent used during sterile processing of tissue.

“Everybody in the industry felt this constraint,” Hartman noted, adding that ConMed expects the issue to be resolved in the coming quarter.

Wise also questioned Hartman about the new surgical smoke-evacuation law in California and how that might impact sales. ConMed acquired surgical-smoke evacuation and filter-technology company Buffalo Filter in 2019.

Hartman noted that the growth rate for Buffalo Filter tends to be highest in areas where smoke-evacuation laws are in place. Currently there are 10 states with smoke-evacuation laws, five states where laws are pending, and another six states where legislation is under consideration.

“We’ll do everything we can to be a participant in those markets,” Hartman said.

ConMed manufactures surgical devices and equipment for minimally invasive procedures. Specialty surgical areas include orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery, and gastroenterology

Headquartered in Largo, Florida since 2021, ConMed’s former corporate headquarters in New Hartford are still used for manufacturing, finance, human resources, legal, and other corporate functions.