ConMed’s Q1 Profit Down To $6.3 Million
ConMed Corp. (NASDAQ: CNMD) reported net income of $6.3 million, in the first quarter, down nearly 27 percent from $8.6 million, in the year-ago period.
The Utica–based surgical-device maker’s reported net earnings included restructuring costs in both 2015 and 2014, along with charges for dealing with a patent dispute, activist shareholders, and New York state corporate-tax reform in 2014, the company said in its earnings release.
Excluding the impact of those items, ConMed’s adjusted net earnings of $11.8 million was down 13 percent and adjusted net earnings per share of 42 cents was off 14 percent from the year-prior period, ConMed said.
ConMed released its first-quarter financial report after the markets closed on Wednesday. Shares of the medical-device maker jumped $4.60, or 9.3 percent, to $53.95 in Thursday’s trading, as of 2:15 p.m., according to Yahoo Finance data.
ConMed generated sales of nearly $178 million in the first quarter, down 2.2 percent from almost $182 million in the year-earlier period. However, sales beat the Zacks consensus analyst estimate of $174 million.
And adjusting for foreign-currency fluctuations, ConMed’s sales increased by 0.8 percent in the latest quarter, it reported.
ConMed’s focus remains on “transforming” its commercial organization to “facilitate” sales and earnings growth, Curt Hartman, president and CEO of ConMed, said in the firm’s earnings release.
“Beyond the positive constant currency sales growth realized during the quarter, I am pleased with the operational progress we have made to position our company for future success,” said Hartman.
ConMed also reiterated its previously disclosed constant-currency sales guidance, which calls for organic sales growth of between 1 percent and 3 percent in 2015.
If foreign-currency exchange rates hold near current levels, the firm expects net sales in the year’s last three quarters “to be negatively impacted by $3.9 million,” when compared to prior sales guidance that it based on currency rates as of Jan. 23.
ConMed manufactures surgical devices and equipment for minimally invasive procedures. The firm says its products are used by surgeons and physicians in a variety of specialties, including orthopedics, general surgery, gynecology, neurosurgery, and gastroenterology. The company has a direct selling presence in 16 countries outside the U.S., and international sales make up more than half of its total sales.