CONMED's first quarter was marked by strong revenue and non-GAAP profit performance, which exceeded Wall Street expectations and led to a significant positive market reaction. Management attributed this outcome to balanced growth across both orthopedics and general surgery segments, with particular strength in foot and ankle products as well as robust demand for BioBrace and AirSeal platforms. CEO Pat Beyer emphasized ongoing progress in supply chain initiatives, noting early improvements in backorder reduction and increased operational stability. He highlighted that “BioBrace is being used clinically in over 50 procedures from the rotator cuff to the ACL and into the Achilles,” supported by multiple clinical studies and recent FDA clearance for a new delivery device. Despite these gains, management acknowledged continued work is needed to optimize production and procurement processes.
Is now the time to buy CNMD? Find out in our full research report (it’s free).
CONMED (CNMD) Q1 CY2025 Highlights:
- Revenue: $321.3 million vs analyst estimates of $313.1 million (2.9% year-on-year growth, 2.6% beat)
- Adjusted EPS: $0.95 vs analyst estimates of $0.81 (17.1% beat)
- Adjusted EBITDA: $61.3 million vs analyst estimates of $56.77 million (19.1% margin, 8% beat)
- The company slightly lifted its revenue guidance for the full year to $1.36 billion at the midpoint from $1.36 billion
- Management raised its full-year Adjusted EPS guidance to $4.53 at the midpoint, a 4.6% increase
- Operating Margin: 5%, down from 11.2% in the same quarter last year
- Constant Currency Revenue rose 3.8% year on year (5.9% in the same quarter last year)
- Market Capitalization: $1.63 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions CONMED’s Q1 Earnings Call
- Phil Soran (Piper Sandler) asked why full-year guidance was only modestly raised despite the Q1 beat; CFO Todd Garner clarified that the company is maintaining its operational outlook, attributing the increase solely to improved currency impacts.
- Robbie Marcus (JPMorgan) questioned the evolving tariff impact calculations and mitigation; Garner explained that Mexican exemptions improved the outlook, and logistics changes are underway, though regulatory constraints limit rapid shifts.
- Rick Wise (Stifel) requested more detail on supply chain progress and BioBrace updates; CEO Pat Beyer described targeted improvements in procurement and production, with several implant products off backorder and the BioBrace clinical program advancing.
- Young Li (Jefferies) inquired about the ongoing portfolio review and early findings; Beyer emphasized continued focus on the four key growth drivers and positive customer feedback, while noting that deeper portfolio evaluation is ongoing.
- Travis Steed (Bank of America) sought clarification on the long-term run rate for China tariffs; Garner reiterated that the timing of tariff expense recognition is tied to inventory cycles and that mitigation efforts are ongoing, with full 2026 impact still uncertain.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will be monitoring (1) the pace of supply chain stabilization and its impact on product availability, (2) adoption rates and clinical feedback for new BioBrace and AirSeal offerings, and (3) the company’s effectiveness in offsetting tariff-related costs through operational or pricing actions. Progress in portfolio evaluation and further FDA clearances could also influence performance.
CONMED currently trades at $52.84, up from $49.02 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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