CONMED 2025 Q2 Earnings Misses Targets as Net Income Drops 28.5%

CONMED (CNMD) reported its fiscal 2025 Q2 earnings on July 31st, 2025. The company missed earnings expectations with GAAP revenue hitting $342.3 million, surpassing analyst estimates of $338.35 million, but non-GAAP diluted EPS of $1.15 beat the $1.12 estimate. The company adjusted its full-year guidance, now expecting revenue between $1.356 billion and $1.378 billion, raising the lower end of its previous range. Adjusted diluted EPS guidance was increased to $4.40-$4.55, factoring in tariff impacts.

Revenue
CONMED reported a total revenue increase of 3.1% to $342.35 million in Q2 2025 compared to $332.10 million in Q2 2024. The orthopedic surgery segment generated $140.73 million, while general surgery contributed $201.61 million, culminating in consolidated net sales of $342.35 million.

Earnings/Net Income
CONMED's EPS fell by 28.9% to $0.69 in Q2 2025 from $0.97 in Q2 2024. Meanwhile, net income decreased by 28.5%, falling to $21.42 million from $29.98 million. Overall, the EPS performance was disappointing, reflecting a substantial decline.

Price Action
The stock price of CONMED edged down 2.05% during the latest trading day, climbed 3.21% over the most recent trading week, and declined 1.79% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing CONMED shares following a quarter-over-quarter revenue increase and holding for 30 days has yielded poor results over the past three years. This approach has resulted in a -51.07% return, significantly underperforming the benchmark return of 85.57%. The excess return was -136.64%, indicating considerable losses and a declining portfolio value. Despite a maximum drawdown of 0.00%, which suggests no additional downside risk, the investment strategy failed to generate profit. These results highlight the importance of re-evaluating investment strategies in light of recent performance trends.

CEO Commentary
"We are encouraged by our second quarter performance as we focused on building a stronger operational foundation," commented Patrick J. Beyer, President and Chief Executive Officer of CONMED. He emphasized the ongoing efforts to enhance supply chain operations, aiming to transform this aspect into a company strength. Beyer expressed strong confidence in the long-term potential of the company's four key growth drivers, highlighting the solid foundation they provide for sustained revenue and earnings growth.

Guidance
Based on current foreign currency exchange rates, the Company now expects full-year reported revenue to be between $1.356 billion and $1.378 billion. Adjusted diluted net earnings per share are projected to be in the range of $4.40 to $4.55, accounting for an estimated foreign currency headwind of approximately 10 cents. This updated guidance reflects a negative EPS impact of approximately $0.09 due to recent tariff announcements in the second half of 2025.

Additional News
CONMED announced on July 7, 2025, that Martha Aronson will step down from its Board of Directors to become President and CEO of Merit Medical Systems, Inc. Aronson has been a valuable asset to CONMED's board since February 2016, offering strategic insights and contributions to the company's growth. Additionally, on May 21, 2025, CONMED appointed LaVerne Council as the new Independent Chair of the Board of Directors, succeeding Martha Goldberg Aronson. Council, recognized for her expertise in global operations and information technology, aims to drive the company's long-term strategy. Furthermore, CONMED declared a quarterly cash dividend of $0.20 per share on May 20, 2025, payable on July 3, 2025, to shareholders on record as of June 13, 2025.