Conmed Faces Challenges in Next Fiscal Year

Shares of Conmed, a medical technology company based in Largo, Fla., experienced a significant drop following the company’s announcement of slower growth in the next fiscal year. The stock plummeted by 11% to $84.75, reaching a new 52-week low. Overall, Conmed shares have declined by 23% since the beginning of this year.

In a statement released on Wednesday, Conmed projected its revenue for 2024 to be in the range of $1.34 billion to $1.365 billion, reflecting a year-on-year growth of 8% to 10%. Although this growth rate is significant, it is notably lower than the 19.1% increase in sales experienced by the company in 2023.

Prior to the update by analysts on Thursday morning, FactSet data showed that their initial estimates predicted 2024 sales of $1.36 billion. However, following the announcement, analysts revised their forecasts and now anticipate full-year sales of $1.35 billion.

Adjusted earnings per share for 2024 are expected to fall within the range of $4.30 to $4.40, according to Conmed. Meanwhile, analysts surveyed by FactSet estimate adjusted earnings per share at $4.33. Before the company issued its guidance, analysts had initially anticipated adjusted earnings of $4.40 per share.

In the fourth quarter, Conmed’s revenue increased by 30.4% to reach $327 million. Nevertheless, this figure fell short of analysts’ expectations, which had predicted revenue of $332.2 million for the same period. On the positive side, the company’s profit rose from $26.6 million (86 cents per share) in the previous year to $33.1 million ($1.05 per share) in the current period. However, even this improvement failed to meet analysts’ expectations of 98 cents per share.

After excluding one-time items, Conmed posted a profit of $1.06 per share, which was lower than the $1.11 anticipated by analysts.

Despite the challenges faced by Conmed, the company remains determined to navigate the hurdles presented in the next fiscal year and potentially achieve steady growth.