CONMED Q3 Earnings and Revenues Beat Estimates, Margins Contract

CONMED Corporation CNMD delivered adjusted earnings per share (EPS) of $1.08 in the third quarter of 2025, up 2.9% year over year. The figure beat the Zacks Consensus Estimate by 2.9%.The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.GAAP EPS for the quarter was 9 cents, down 94.3% from the year-ago period’s EPS of $1.57.CNMD’s Revenues in DetailCONMED registered revenues of $337.9 million in the third quarter, up 6.7% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.4%.At constant exchange rate (CER), revenues were up 6.3% year over year.Per management, the top line was aided by strength in General Surgery and Orthopedics Surgery product lines.CONMED’s Segmental DetailsCNMD derived its revenues from two product lines — Orthopedic Surgery and General Surgery.Orthopedic Surgery revenues in the third quarter totaled $138.2 million, up 5.9% and 5.3% year over year on a reported basis and at CER, respectively.Within Orthopedic Surgery, BioBrace’s third-quarter 2025 growth was driven by expanding clinical adoption and strong surgeon engagement.The U.S. orthopedic sales increased 5.5% and internationally, orthopedic sales increased 5.2%.General Surgery revenues were $199.7 million, up 7.3% on a reported basis and 6.9% at CER year over year.U.S. General Surgery sales grew 6%, while internationally General Surgery sales increased 9.2%.CNMD’s Geographical ResultsGeographically, CONMED derived its revenues from the Domestic and International regions.Domestic revenues in the third quarter totaled $194 million, up 5.9% on a reported basis year over year.International revenues in the third quarter amounted to $143.9 million, up 7.8% on a reported basis and 6.8% at CER year over year.CONMED Corporation Price, Consensus and EPS Surprise CONMED Corporation price-consensus-eps-surprise-chart | CONMED Corporation QuoteCONMED’s Margin AnalysisIn the quarter under review, CNMD’s gross profit decreased 7.2% year over year to $166.1 million. The gross margin contracted 736 basis points (bps) to 49.2%.Selling & administrative expenses increased 40.7% year over year to $140.3 million. Research and development expenses rose 2.5% year over year to $13.9 million. Total operating expenses of $154.2 million increased 36.1% on a year-over-year basis.Total operating profit totaled $11.9 million, reflecting an 81.9% plunge from the year-ago quarter. The operating margin in the third quarter contracted 1723 bps to 3.5%.CNMD’s Financial PositionCONMED exited third-quarter 2025 with a cash balance of $38.9 million compared with $33.9 million at the end of the second quarter. Long-term debt at the end of third-quarter 2025 was $853 million compared with $881.1 million at the second-quarter end.Cumulative net cash provided by operating activities at the end of third-quarter 2025 was $53.7 million compared with $51.2 million a year ago.CONMED’s GuidanceCNMD has narrowed its outlook for 2025.For 2025, total revenues are now expected to be in the range of $1.365 billion-$1.372 billion, narrowed from the prior outlook of $1.356 billion and $1.378 billion. The Zacks Consensus Estimate is pegged at $1.37 billion.The adjusted EPS for 2025 is now projected to be in the range of $4.48-$4.53, narrowed from the prior outlook of $4.40-$4.55. The Zacks Consensus Estimate is pegged at $4.47.Our Take on CNMDCONMED exited the third quarter of 2025 with better-than-expected results. The solid top-line performance and uptick in revenues from both product lines were encouraging. Robust geographical results looked promising. The expansion of both margins bodes well for the stock.On the earnings call, management sounded optimistic about CNMD’s Orthopedics portfolio’s BioBrace and Foot and Ankle, and General Surgery portfolio’s Buffalo Filter and AirSeal products. This looks encouraging for the stock.On the flip side, the contraction of both margins does not bode well for the stock.CONMED’s Zacks Rank & Key PicksCNMD currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader medical space that have announced quarterly results are Boston Scientific Corporation BSX, West Pharmaceutical Services, Inc. WST and Exact Sciences Corporation EXAS.Boston Scientific, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion outpaced the consensus mark by 1.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Boston Scientific has a long-term estimated growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.4%.West Pharmaceutical reported third-quarter 2025 adjusted EPS of $1.96, beating the Zacks Consensus Estimate by 17.4%. Revenues of $804.6 million surpassed the Zacks Consensus Estimate by 2.4%. It currently carries a Zacks Rank #2.West Pharmaceutical has a long-term estimated growth rate of 9.8%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.5%.Exact Sciences reported third-quarter 2025 adjusted EPS of 24 cents, beating the Zacks Consensus Estimate by 84.6%. Revenues of $850.7 million surpassed the Zacks Consensus Estimate by 4.9%. It currently sports a Zacks Rank #1.Exact Sciences has a long-term estimated growth rate of 30.3%. EXAS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 352.3%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report CONMED Corporation (CNMD): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report Exact Sciences Corporation (EXAS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks