
Surgical Products Provider CONMED Delivers Solid Performance Despite Allograft Supply Disruption
CONMED Corporation has released its financial results for the third with revenue coming in at $304.6 million, marking a 10.7% increase year over year. Analysts had been forecasting total revenue of $300.9 million. The U.S. market experienced 9.5% increase in revenue compared to the previous year, while international revenue grew by 12.3% year over year.
Orthopedic surgery revenue grew 5% to $124.7 million and general surgery revenues grew 15% to $179.9 million. The company noted on the call that it is focused on receiving approval for its delivery system for rotator cuff repair, expanding its international presence, and medical education and clinical studies supporting its products. Management also noted a supply disruption with its allograft supplier that lowered revenue in the 3Q23 and will persist into the fourth quarter. From a capital purchase standpoint the company said they are not currently seeing significant restraints from hospitals on purchases. They noted that they are on the lower end of the spectrum in terms of capital purchases leading to less succepptibility to economic headwinds.
Adjusted net income of $28.4 million increased 19.5% year-over-year and the company’s adjusted diluted net earnings per share of $0.90 increased 16.9% year-over-year. Analysts had been forecasting adjusted EPS of $0.83.
The company also raised the lower end of its outlook for the remainder of 2023, based on the strong results in the third quarter. CONMED is now projecting full-year revenue to range between $1.240 billion and $1.260 billion, which reflects an increase from its previous guidance that stood between $1.230 billion and $1.260 billion. The midpoint of the guidance range implies 4Q23 revenue of $332 million. Furthermore, the company’s full-year 2023 adjusted diluted net earnings per share are now expected to fall in the range of $3.45 to $3.55, compared to its prior range of $3.40 to $3.55.
Curt R. Hartman, CONMED’s Chair of the Board, President, and Chief Executive Officer, expressed his satisfaction with the quarter’s performance. “The third quarter saw our team drive double-digit revenue and earnings growth amid healthy end markets,” he commented. “I’m proud of what we’ve accomplished year to date in 2023, particularly that the team has been able to drive above-market revenue growth in both businesses.”