CONMED’s third quarter results were marked by steady revenue growth in both orthopedics and general surgery, supported by continued surgeon adoption of core products like BioBrace and the AirSeal platform. Management pointed to improvements in supply chain operations, especially within orthopedics, as a factor in supporting incremental sales growth. CEO Patrick Beyer credited “expanding clinical adoption and strong surgeon engagement” for BioBrace’s performance, while also highlighting operational progress in reducing back orders and improving service levels.
Is now the time to buy CNMD? Find out in our full research report (it’s free for active Edge members).
CONMED (CNMD) Q3 CY2025 Highlights:
- Revenue: $337.9 million vs analyst estimates of $334.5 million (6.7% year-on-year growth, 1% beat)
- Adjusted EPS: $1.08 vs analyst estimates of $1.05 (2.7% beat)
- Adjusted EBITDA: $65.63 million vs analyst estimates of $66.68 million (19.4% margin, 1.6% miss)
- The company slightly lifted its revenue guidance for the full year to $1.37 billion at the midpoint from $1.37 billion
- Management slightly raised its full-year Adjusted EPS guidance to $4.51 at the midpoint
- Operating Margin: 3.5%, down from 20.7% in the same quarter last year
- Constant Currency Revenue rose 6.3% year on year (4.3% in the same quarter last year)
- Market Capitalization: $1.38 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CONMED’s Q3 Earnings Call
- Lilia-Celine Lozada (JPMorgan): asked about the rationale behind shifting from dividends to share repurchases. CFO Todd Garner said the move aligns CONMED with peer medtech companies and was enabled by achieving a lower leverage target.
- Anna Runci (Piper Sandler): questioned whether tariffs had become a larger headwind than previously anticipated. Garner clarified that tariff impacts have been consistent with prior forecasts, explaining the timing difference due to inventory accounting.
- Vikramjeet Chopra (Wells Fargo): inquired about AirSeal adoption rates in ambulatory surgical centers and international markets. CEO Patrick Beyer outlined the clinical benefits and predicted accelerating adoption as new systems are deployed.
- Young Li (Jefferies): asked about recapturing orthopedic market share after supply chain issues. Beyer explained that market share recovery will be gradual, requiring sustained operational improvements and customer re-engagement.
- Joseph Conway (Needham & Company): requested more detail on orthopedics growth drivers. Beyer highlighted BioBrace’s expanded use and the positive impact of improved supply chain management, though he cautioned that progress will take additional quarters.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will focus on (1) the pace of supply chain normalization and its effect on orthopedics market share, (2) the adoption trajectory of AirSeal and Buffalo Filter in both U.S. and international markets, and (3) tangible results from the ongoing strategic portfolio review and capital allocation changes. We will also monitor the impact of tariffs on gross margins and the company’s ability to offset these pressures through operational improvements.
CONMED currently trades at $44.71, in line with $44.44 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
