CONMED’s second quarter saw a positive market response, as the company’s revenue and non-GAAP profit exceeded Wall Street’s expectations. Management highlighted worldwide general surgery growth, led by its AirSeal and Buffalo Filter platforms, as the main drivers of performance. CEO Patrick Beyer underscored the impact of supply chain improvements and strong demand for new products like BioBrace in orthopedics. Despite ongoing cost pressures, the company’s operational enhancements and product momentum contributed to outperformance, with Beyer stating, “Our supply chain initiatives can accelerate growth in orthopedics as we move into 2026.”
Is now the time to buy CNMD? Find out in our full research report (it’s free).
CONMED (CNMD) Q2 CY2025 Highlights:
- Revenue: $342.3 million vs analyst estimates of $338.3 million (3.1% year-on-year growth, 1.2% beat)
- Adjusted EPS: $1.15 vs analyst estimates of $1.12 (2.4% beat)
- Adjusted EBITDA: $68.6 million vs analyst estimates of $70.33 million (20% margin, 2.5% miss)
- The company slightly lifted its revenue guidance for the full year to $1.37 billion at the midpoint from $1.36 billion
- Management lowered its full-year Adjusted EPS guidance to $4.48 at the midpoint, a 1.1% decrease
- Operating Margin: 11.1%, down from 14.2% in the same quarter last year
- Constant Currency Revenue rose 2.9% year on year (5.2% in the same quarter last year)
- Market Capitalization: $1.67 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 Q2 Earnings Call
- Joseph Scott Conway (Needham & Company) asked about competitive dynamics in Buffalo Filter and potential new entrants. CEO Patrick Beyer confirmed competition remains unchanged, with growth driven by legislative tailwinds rather than new players.
- Joseph Scott Conway (Needham & Company) inquired about supply chain progress and sales force expansion. Beyer stated improvements are ongoing, with plans to add sales professionals dynamically as product demand and opportunities arise.
- Lilia-Celine Breton Lozada (JPMorgan) questioned the softer capital sales and potential impact from hospital budgets. Beyer explained Q2 capital was affected by tough 2024 comparables and some supply challenges, but underlying demand remains stable.
- Lilia-Celine Breton Lozada (JPMorgan) asked about CONMED’s orthopedic share position amid supply constraints. Beyer admitted market share loss due to supply issues but stressed the offensive position with BioBrace and planned recovery as supply stabilizes.
- Xuyang Li (Jefferies) sought clarity on AirSeal adoption rates in robotic procedures. CFO Todd Garner and Beyer explained adoption has steadily increased, especially in complex procedures where clinical benefits are recognized.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be tracking (1) continued adoption and legislative support for Buffalo Filter, (2) progress on resolving supply chain constraints to restore growth in orthopedics, and (3) the impact of operational efficiency initiatives on margins. We’ll also watch for new product launches and the pace of debt reduction as indicators of execution.
CONMED currently trades at $54.01, up from $50.22 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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