Conmed (NYSE:CNMD) shares took a hit today on third-quarter results that missed the consensus revenue forecast.
CNMD shares fell 7.8% to $77.15 apiece in morning trading. MassDevice‘s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — ticked up more than 1%.
Despite the revenue miss and EPS guidance cut, Mike Matson of Needham & Co. stuck with his Buy rating for the minimally invasive medical device company: “We believe that CNMD can sustain high-single digit underlying revenue growth and that its EPS growth can accelerate as macro pressures ease.”
The Largo, Florida–based company posted profits of $46.2 million for the quarter. That equals $1.48 per share on sales of $275.1 million for the three months ended Sept. 30, 2022.
Conmed more than tripled its bottom line on sales growth of 10.5%.
Adjusted to exclude one-time items, earnings per share came to 77¢. That registers 2¢ ahead of expectations on Wall Street. However, Conmed’s sales fell short of analysts’ projections of $280.8 million.
Conmed’s orthopedic surgery sales ticked up by 12.2%, while general surgery revenues increased by 9.4%.
“I’m proud that our third quarter results delivered strong top-line growth in a tougher-than-expected environment,” said Commed CEO Curt R. Hartman. “During the quarter we closed on our acquisition of Biorez, and I am pleased that both our In2Bones and Biorez integrations are off to fantastic starts. I am confident that both of these businesses will add to our future outlook of sustained growth in revenue and profitability.”
Conmed cut its guidance for the full year, with the high end of its EPS expectations falling particularly far. It now expects adjusted EPS to fall between $3.21 and $3.28. The company previously projected a range of $3.25 to $3.45.
However, the low end of its revenue guidance did tick up. The company now projects between $1.1 billion and $1.115 billion for the year. Still, the high end fell from the previously touted range of between $1.095 billion and $1.140 billion.