Conmed Corp is a Utica, New York-based medical equipment company that focuses on sports medicine procedures and general surgeries. The firm currently reports through two reporting units, orthopedic surgery, and general surgery. From a geographic perspective, the firm is U.S.-centric, with maximum domestic sales accounting for revenue, EMEA accounting for second place, APAC at third, and the non-U.S. Americas region driving the remaining revenue.
Performance Overview
Conmed Corp (CNMD, Financial) reported net sales of $332.1 million for Q2 2024, a 4.5% increase from $317.7 million in Q2 2023. However, this figure slightly missed the analyst estimate of $332.33 million. The company achieved a diluted EPS of $0.96, surpassing the analyst estimate of $0.83.
Despite the revenue growth, Conmed Corp continues to face supply chain challenges, which have delayed the anticipated commercial reacceleration. Curt R. Hartman, CONMED’s Chair of the Board, President, and Chief Executive Officer, commented,
“Our second quarter and first half of 2024 played out largely as expected. Looking forward, we have not yet fully recovered from our supply chain challenges, which has delayed the commercial reacceleration that we had contemplated in our plan at the beginning of the year. We remain highly focused on getting back on offense to serve our customers and driving above-market, long-term growth.”
Financial Achievements and Challenges
Conmed Corp's gross profit for Q2 2024 was $183.7 million, up from $170.7 million in Q2 2023, representing a gross margin of 55.3%, an improvement from 53.7% in the previous year. The company also reported a significant increase in net income, which rose to $30.0 million from $13.7 million in Q2 2023.
However, the company has revised its full-year revenue guidance to a range of $1.305 billion to $1.315 billion, down from the previous range of $1.330 billion to $1.355 billion. This revision is attributed to the ongoing supply chain issues and the negative impact of foreign currency, estimated to be between $5 million and $10 million for the full year.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $332.1 million | $317.7 million |
| Gross Profit | $183.7 million | $170.7 million |
| Net Income | $30.0 million | $13.7 million |
| Diluted EPS | $0.96 | $0.43 |
Segment Performance
Orthopedic Surgery reported net sales of $139.5 million, a slight decrease from $140.8 million in Q2 2023. General Surgery, on the other hand, saw an 8.9% increase in net sales, reaching $192.6 million compared to $176.9 million in the same period last year.
Geographic Performance
Domestic sales grew by 6.1% to $185.4 million, while international sales increased by 2.6% to $146.7 million. The impact of foreign currency was minimal, contributing 0.7% to the overall growth.
Outlook
For the full year, Conmed Corp now expects adjusted diluted net earnings per share to be in the range of $3.95 to $4.02, down from the prior range of $4.25 to $4.35. The company remains focused on overcoming supply chain challenges and driving long-term growth.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Conmed Corp for further details.
