Key Highlights

  • Consensus EPS of 1.00 compares with second-quarter diluted EPS of 0.77, against 0.69 a year earlier.
  • Consensus revenue of USD 336.28 million compares with second-quarter net sales of USD 343,488 thousand, against USD 342,345 thousand.
  • Gross profit was USD 197,458 thousand against USD 188,320 thousand, and operating income was USD 36,405 thousand.
  • U.S. sales were USD 175,385 thousand against USD 190,612 thousand, with General Surgery at USD 123,732 thousand.

CONMED (NYSE:CNMD) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 1.00 on revenue of USD 336.28 million, and the company has a market capitalization of USD 1.43 billion.

CONMED develops, manufactures and sells surgical devices and related equipment, with Orthopedic Surgery and General Surgery product lines. Second-quarter net sales were USD 343,488 thousand against USD 342,345 thousand, and net income was USD 23,071 thousand against USD 21,421 thousand.

Estimates Against the Last Reported Quarter

The EPS estimate of 1.00 is above the second-quarter diluted EPS of 0.77, which compared with 0.69 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 336.28 million is below the USD 343,488 thousand reported, which compared with USD 342,345 thousand.

Cost of sales was USD 146,030 thousand against USD 154,025 thousand, and operating expenses were USD 161,053 thousand against USD 150,159 thousand.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no third-quarter figures.

The filing states that the company has experienced higher manufacturing and operating costs and ongoing supply chain challenges. It states that the Supreme Court ruled in the first quarter that tariffs paid under the International Emergency Economic Powers Act were illegal, and that the company has followed the process to submit refund claims.

Geographic Sales Detail

U.S. sales were USD 175,385 thousand against USD 190,612 thousand, with General Surgery at USD 123,732 thousand against USD 138,925 thousand. Europe, Middle East and Africa sales were USD 76,147 thousand against USD 67,777 thousand.

Asia Pacific sales were USD 57,157 thousand against USD 52,081 thousand, and Americas excluding the United States were USD 34,799 thousand against USD 31,875 thousand. Salesforce and commission expense was USD 59,150 thousand against USD 58,923 thousand.

Income Lines, Debt and Repurchases

Operating income was USD 36,405 thousand against USD 38,161 thousand, and interest expense was USD 7,883 thousand against USD 7,824 thousand. Income before income taxes was USD 31,347 thousand against USD 29,919 thousand. No common dividend was declared against 0.20 a year earlier.

For six months, the company repurchased USD 43,221 thousand of common stock and paid USD 637,176 thousand to repurchase convertible notes, with proceeds from a term loan of USD 450,000 thousand. Long-term debt was USD 657,050 thousand against USD 834,230 thousand, and cash was USD 37,328 thousand. The estimates table lists a market capitalization of USD 1.43 billion.

Items to Track in the Report

Reported EPS against 1.00 and net sales against USD 336.28 million are the headline comparisons. Other markers are U.S. sales, gross profit and the tariff refund process.