ConMed Corporation (NYSE: CNMD) recently reported it closed out a strong second quarter with sales rising 14.6 percent over the same quarter last year and pushing the company into the black.
Sales for the quarter totaled $317.7 million at the medical-device maker, up from $277.2 million for the same quarter in 2022. ConMed’s net income was $13.7 million, compared with a net loss of $168.3 million for the second quarter last year. Earnings per share for the quarter were 45 cents, compared with a loss per share of $5.65 a year ago.
“I’m very pleased with the focused results delivered in the quarter, and I’m confident we will build on our success in the second half [of the year],” Curt R. Hartman, the company’s president, CEO, and board chair said during a July 26 conference call with investors.
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The company’s two acquisitions in 2022 — Tennessee-based In2Bones Global, Inc., and Connecticut-based Biorez, Inc. — have integrated well. In2Bones shows continued growth while Biorez is building momentum and market acceptance, he says.
Inflation remains an issue on the materials side, cutting into profits, and supply-chain issues have not completely resolved, but Hartman says he sees those issues stabilizing and possibly even improving into the second half of the year. Surgical markets are steadying in the wake of the pandemic, he says, and health-care staffing continues to improve.
“If you really digest the quarter we just delivered, the overall prospects for ConMed, given the surgical diversity offered and the balanced growth our portfolio is demonstrating, look the best they have ever looked in my tenure,” Hartman says.
The company’s quarterly performance surpassed the estimates of Zacks Investment Research for net income by 3.9 percent.
Based on the strong second quarter, ConMed revised its full-year guidance upward. The company now forecasts full-year sales of $1.23 billion to $1.26 billion, up from its previous guidance of $1.205 billion to $1.25 billion. The company expects full-year earnings-per-share in the range of $3.40 to $3.55 per share, compared to its prior projected range of $3.30 to $3.50.
“ConMed exited the second quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark,” the Zacks report read. “The company’s revenues recovered from the shipping delays. It had reduced the backlog due to the aforementioned disruption to normal operating levels during the first quarter of 2023. Moreover, a strong order book is likely to drive revenue growth for the rest of the year.”
Zacks cautioned that the rising cost of goods and higher operation expenses could pressure earnings.
ConMed’s stock price is up more than 27 percent year to date, though the stock has declined about 8 percent in the couple weeks since the earnings report.
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.
