ConMed Corp. (NYSE: CNMD) closed out 2021 — the second year of the COVID-19 pandemic which saw the arrival of two new variants and led to large-scale pauses on elective surgeries numerous times — with solid fourth-quarter sales and full-year sales topping $1 billion for the first time in the company’s history. The surgical-device maker reported […]
ConMed Corp. (NYSE: CNMD) closed out 2021 — the second year of the COVID-19 pandemic which saw the arrival of two new variants and led to large-scale pauses on elective surgeries numerous times — with solid fourth-quarter sales and full-year sales topping $1 billion for the first time in the company’s history.
The surgical-device maker reported fourth-quarter sales of $274 million, up more than 8 percent from $253 million in the year-prior quarter, and net income was $24.4 million, up slightly from $24.1 million in the same period in 2020.
ConMed’s full-year sales for 2021 were $1.01 billion, an increase of more than 17 percent over $862.5 million in 2020. Net income for the year was $62.5 million, up from $9.5 million in 2020. Diluted earnings per share were $1.94 for 2021, up from 32 cents in 2020.
Curt Hartman — company president, chairman, and CEO — used a Jan. 26 conference call with investors to praise the company’s employees for achieving the company’s first-ever billion-dollar year.
“Our expectation is it will not take another 52 years to achieve the second billion,” he quipped.
Zacks Investment Research called ConMed’s fourth quarter a “mixed note” with earnings that beat its estimate, but revenue that fell short of what Zacks expected.
“Per management, the company displayed strength and agility despite a tough fourth-quarter operating environment due to the impact of the COVID-19 resurgence,” Zacks stated in a report. “Expansion of both gross and operating margins bodes well for the stock.” However, the Chicago-based investment-research firm said the continued pandemic impact raises concerns, especially since ConMed operates in a highly competitive market. Competitors include Stryker, Medtronic, and Smith & Nephew.
The virus crisis played a key role in the company’s performance in 2021, Hartman said during the call. The year did not unfold quite as the company expected, with continued COVID surges that impacted sales, as well as staffing issues, and supply-chain disruptions.
“The Delta variant had a larger impact on hospitals in November and December than we had expected, and the new Omicron variant had an increasing impact as we moved through December and continues to have a significant impact on hospital procedures in January,” said ConMed executive VP and CFO Todd Garner.
With those factors in mind, the medical-technology company forecasts full-year revenue for 2022 in the range of $1.075 billion to $1.125 billion with adjusted diluted net earnings per share of $3.60 to $3.85.
“As we transition out of the pandemic, we believe customers will continue to reward our actions as valued partners with increased trust and market share,” Garner said.
ConMed manufactures surgical devices and equipment for minimally invasive procedures. Specialty surgical areas include orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery, and gastroenterology.
The company moved its corporate headquarters from 525 French Road in New Hartford, to its Largo, Florida facility in early 2021. ConMed maintains manufacturing, finance, human resources, legal, and other corporate functions at the New Hartford facility.
