Surgical devices maker Conmed Q2 beats expectations, raises FY forecast

Overview

• Conmed Q2 sales rise 3.1% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus, driven by supply chain improvements

• Company raises full-year revenue and adjusted EPS guidance

Outlook

• Based on current forex rates, Conmed expects headwinds to be immaterial vs 50-70 bps of headwind previously

• Conmed expects 2025 revenue between $1.356 bln and $1.378 bln

• Company projects full-year adjusted EPS of $4.40 to $4.55

• Foreign currency headwind estimated at 10 cents on EPS

• Tariffs expected to reduce EPS by $0.09 in H2 2025

Result Drivers

• SUPPLY CHAIN IMPROVEMENTS - Conmed attributes Q2 performance to strengthening supply chain operations, per CEO Patrick J. Beyer

• INTERNATIONAL GROWTH - International sales increased by 3.4% yr/yr, contributing to overall revenue growth

• PRODUCT MIX - Single-use products saw a 6.6% increase, partially offsetting a decline in capital products

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Conmed Corp is $69.00, about 27.1% above its July 29 closing price of $50.29

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw5v8WZta