CONMED (CNMD, Financial) has announced its first-quarter revenue of $321.3 million, exceeding the market's expectation of $313.4 million. The company's leadership expressed confidence in their performance as it provides a solid foundation to meet their annual targets for 2025. The President and CEO, Patrick J. Beyer, highlighted the team's commitment to enhancing operational efficiency, which is crucial for bolstering key growth initiatives and ensuring sustained value for shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Conmed Corp (CNMD, Financial) is $75.17 with a high estimate of $91.00 and a low estimate of $55.00. The average target implies an upside of 53.06% from the current price of $49.11. More detailed estimate data can be found on the Conmed Corp (CNMD) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Conmed Corp's (CNMD, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Conmed Corp (CNMD, Financial) in one year is $121.11, suggesting a upside of 146.61% from the current price of $49.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Conmed Corp (CNMD) Summary page.
CNMD Key Business Developments
Release Date: February 05, 2025
- Total Sales (Q4 2024): $345.9 million, a year-over-year increase of 5.8% as reported and 6% in constant currency.
- GAAP Net Income (Q4 2024): $33.8 million, compared to $33.1 million in the prior year period.
- Adjusted Net Income (Q4 2024): $41.8 million, a 26.2% increase year-over-year.
- Adjusted Diluted EPS (Q4 2024): $1.34, a 26.4% increase year-over-year.
- Total Sales (Full Year 2024): $1.307 billion, a year-over-year growth of 5% as reported and 5.3% in constant currency.
- GAAP Net Income (Full Year 2024): $130.4 million, compared to $64.5 million in 2023.
- Adjusted Net Income (Full Year 2024): $129.9 million, a 20% increase year-over-year.
- Adjusted Diluted EPS (Full Year 2024): $4.17, a 21% increase year-over-year.
- Orthopedic Sales Growth (Q4 2024): 2.4% in constant currency.
- General Surgery Sales Growth (Q4 2024): 8.7% in constant currency.
- Adjusted Gross Margin (Q4 2024): 57.6%, a 120 basis point improvement over the prior year quarter.
- Adjusted Operating Margin (Q4 2024): 18.6%, an increase of 280 basis points over the prior year quarter.
- Cash Flow from Operations (Q4 2024): $43.3 million, compared to $56.4 million in Q4 2023.
- Cash Flow from Operations (Full Year 2024): $167.0 million, compared to $125.3 million in 2023.
- Capital Expenditures (Full Year 2024): $13.1 million, compared to $19.0 million in 2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Conmed Corp (CNMD, Financial) reported a year-over-year increase in total sales of 5.8% for the fourth quarter and 5% for the full year, demonstrating consistent growth.
- The General Surgery business showed strong performance with constant currency growth of 8.7% in Q4 and 7.5% for the full year.
- AirSeal experienced strong double-digit growth, with record capital and disposable sales, indicating robust demand.
- Adjusted net income for the fourth quarter increased by 26.2% year-over-year, and adjusted diluted net earnings per share rose by 26.4%.
- The company improved its adjusted gross margin by 120 basis points in Q4 and 110 basis points for the full year, reflecting better product mix and operating leverage.
Negative Points
- The Orthopedic business faced supply challenges, resulting in below-market performance with only 2.4% growth in Q4 and 2.5% for the full year.
- Despite improvements, the overall sales growth in 2024 was below the potential of Conmed Corp (CNMD)'s portfolio.
- The company is facing potential tariff impacts from international trade negotiations, which could affect future financial performance.
- Conmed Corp (CNMD) experienced a decrease in cash balance from $38.5 million in September to $24.5 million at year-end.
- The company is dealing with a currency headwind that is expected to impact gross margins and adjusted EPS in 2025.
