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CONMED projects Q3 revenue growth, EPS to beat guidance

Published 10/04/2024, 08:06 PM
CNMD
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LARGO, Fla. - CONMED Corporation (NYSE:CNMD), a medical technology company, announced its preliminary financial results for the third quarter of 2024 today. The company anticipates reporting revenues between $315 million to $318 million. This projection is coupled with an adjusted diluted net earnings per share (EPS) growth that surpasses the previously forecasted range of 9% to 11%.

The company will release its comprehensive financial results for the third quarter after the market closes on October 30, 2024. Following the release, CONMED's management plans to hold a conference call at 4:30 p.m. ET to discuss the quarter's performance.

Interested parties can pre-register for the telephone conference call, with details available through CONMED's registration link. Additionally, the call will be webcast live and can be accessed through the Investors section of the company's website, with a replay available shortly after the call concludes.

It is important to note that these figures are preliminary and not yet finalized. The company has emphasized that while this information has been prepared with due diligence, the financial closing procedures for the quarter ending September 30, 2024, are not yet complete. Therefore, actual results may differ materially from these preliminary estimates. Investors are cautioned against relying solely on this preliminary data and should await the full financial statements prepared in accordance with U.S. GAAP.

CONMED specializes in providing surgical devices and equipment across multiple medical specialties, including orthopedics, general surgery, and gastroenterology.

The company also highlighted that this press release contains forward-looking statements which are subject to various risks and uncertainties. These could cause actual results to differ materially from those projected. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on management's current expectations and beliefs.

This news summary is based on a press release statement from CONMED Corporation, and no endorsement of the company or its products is implied.

In other recent news, CONMED Corporation reported a 4.5% increase in second-quarter fiscal 2024 sales, totaling $332 million, and a significant rise in GAAP net income to $30 million. The company, however, revised its full-year revenue guidance downward to between $1.305 billion and $1.315 billion, due to supply constraints in the orthopedic segment. Amid these developments, CONMED declared a quarterly dividend of $0.20 per share, payable to shareholders on record as of mid-September 2024.

In terms of executive shifts, the company disclosed that Eric B. Staves, Vice President and Corporate Controller, is set to depart, with Kimberly A. Lockwood stepping in as Interim Corporate Controller. Additionally, Stanley W. Peters, President of Advanced Surgical & Advanced Endoscopic Technologies, is also set to leave the company.

These recent developments come in the aftermath of Hurricane Helene, which temporarily halted operations at CONMED's manufacturing facility in Florida and distribution center in Georgia. Although the hurricane caused disruptions, the company reported that all employees are safe and both locations have resumed normal operations. The financial impact of the hurricane on the company is currently undetermined.

InvestingPro Insights

CONMED Corporation's preliminary financial results for Q3 2024 align with several key metrics and trends identified by InvestingPro. The company's projected revenue growth and anticipated earnings per share increase are consistent with InvestingPro data showing a 12.02% revenue growth over the last twelve months and an EBITDA growth of 36.29% for the same period.

InvestingPro Tips highlight that CONMED has maintained dividend payments for 13 consecutive years, suggesting financial stability. This could be particularly relevant for investors considering the company's long-term performance amidst its positive earnings outlook.

However, it's worth noting that according to InvestingPro Tips, 8 analysts have revised their earnings downwards for the upcoming period. This contrasts with CONMED's optimistic preliminary results and could indicate some caution among market observers.

The company's price-to-earnings (P/E) ratio stands at 24.27, which InvestingPro data suggests is high relative to near-term earnings growth. This valuation metric might be of interest to investors analyzing CONMED's stock in light of its recent performance and future projections.

For those seeking a more comprehensive analysis, InvestingPro offers 9 additional tips on CONMED, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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