UTICA — ConMed Corporation (NASDAQ: CNMD) on Oct. 30 reported net income of $6.97 million in the third quarter, up almost 20 percent from $5.825 million in the year-ago quarter. The Utica–based surgical-device maker generated earnings per share of 23 cents, up from 20 cents a year prior.
ConMed reported adjusted earnings of $18.2 million, or 62 cents a share, in the third quarter, up nearly 38 percent from $13.2 million, or 46 cents, in the same quarter in 2018.
The company cited severance costs in connection with consolidation of certain manufacturing operations for the adjusted earnings. Those severance costs were mainly incurred in 2019, the firm said.
ConMed’s adjusted earnings of 62 cents beat the consensus analyst estimate of 56 cents, according to Zacks Research.
ConMed generated revenue of $233.6 million in the third quarter, up 15.5 percent year over year as reported and up 15.6 percent in constant currency. That topped the Zacks consensus estimate of $228.3 million.
“Our solid third quarter results were balanced across our product lines and geographies,” Curt Hartman, president and CEO of ConMed, said in the firm’s earnings report. “We are delivering on our commitment to drive increased profitability, while also continuing to invest for sustainable above-market growth on the top and bottom lines. We believe the strong year-to-date performance in 2019 positions us well to continue to deliver at least mid-single-digit revenue growth and double-digit adjusted earnings growth in 2020 and beyond.”
ConMed is also increasing its guidance for adjusted net earnings per share to the range of $2.62 to $2.65 from the previous range of between $2.52 and $2.57. This represents growth over 2018 of 20.2 percent to 21.6 percent.
The adjusted diluted net earnings per share estimates for 2019 exclude amortization of intangible assets, amortization of deferred financing fees and debt discount, which are estimated in the range of between $32 million and $34 million, net of taxes. Also excluded are the costs of special items, including acquisition costs, manufacturing consolidation costs, and debt-refinancing costs, which are estimated in the range of between $15 million and $17 million, net of taxes.
ConMed is a medical technology company that provides surgical devices and equipment for minimally invasive procedures. The firm’s products are used by surgeons and physicians in specialties that include orthopedics, general surgery, gynecology, neurosurgery, thoracic surgery, and gastroenterology.