A month has gone by since the last earnings report for Conmed (CNMD). Shares have added about 0.1% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Conmed due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for CONMED Corporation before we dive into how investors and analysts have reacted as of late.
CONMED Q3 Earnings and Revenues Beat Estimates, Margins Contract
CONMED Corporation delivered adjusted earnings per share of $1.08 in the third quarter of 2025, up 2.9% year over year. The figure beat the Zacks Consensus Estimate by 2.9%.
The adjustments include costs related to legal matters and contingent consideration fair value adjustments, among others.
GAAP earnings per share for the quarter was 9 cents, down 94.3% from the year-ago period’s earnings per share of $1.57.
CNMD’s Revenues in Detail
CONMED registered revenues of $337.9 million in the third quarter, up 6.7% year over year on a reported basis. The figure beat the Zacks Consensus Estimate by 0.4%.
At constant exchange rate (CER), revenues were up 6.3% year over year.
Per management, the top line was aided by strength in General Surgery and Orthopedics Surgery product lines.
CONMED’s Segmental Details
CNMD derived its revenues from two product lines — Orthopedic Surgery and General Surgery.
Orthopedic Surgery revenues in the third quarter totaled $138.2 million, up 5.9% and 5.3% year over year on a reported basis and at CER, respectively.
Within Orthopedic Surgery, BioBrace’s third-quarter 2025 growth was driven by expanding clinical adoption and strong surgeon engagement.
The U.S. orthopedic sales increased 5.5% and internationally, orthopedic sales increased 5.2%.
General Surgery revenues were $199.7 million, up 7.3% on a reported basis and 6.9% at CER year over year.
U.S. General Surgery sales grew 6%, while internationally General Surgery sales increased 9.2%.
CNMD’s Geographical Results
Geographically, CONMED derived its revenues from the Domestic and International regions.
Domestic revenues in the third quarter totaled $194 million, up 5.9% on a reported basis year over year.
International revenues in the third quarter amounted to $143.9 million, up 7.8% on a reported basis and 6.8% at CER year over year.
CONMED’s Margin Analysis
In the quarter under review, CNMD’s gross profit decreased 7.2% year over year to $166.1 million. The gross margin contracted 736 basis points (bps) to 49.2%.
Selling & administrative expenses increased 40.7% year over year to $140.3 million. Research and development expenses rose 2.5% year over year to $13.9 million. Total operating expenses of $154.2 million increased 36.1% on a year-over-year basis.
Total operating profit totaled $11.9 million, reflecting an 81.9% plunge from the year-ago quarter. The operating margin in the third quarter contracted 1723 bps to 3.5%.
CNMD’s Financial Position
CONMED exited third-quarter 2025 with a cash balance of $38.9 million compared with $33.9 million at the end of the second quarter. Long-term debt at the end of third-quarter 2025 was $853 million compared with $881.1 million at the second-quarter end.
Cumulative net cash provided by operating activities at the end of third-quarter 2025 was $53.7 million compared with $51.2 million a year ago.
CONMED’s Guidance
CNMD has narrowed its outlook for 2025.
For 2025, total revenues are now expected to be in the range of $1.365 billion-$1.372 billion, narrowed from the prior outlook of $1.356 billion and $1.378 billion.
The adjusted earnings per share for 2025 is now projected to be in the range of $4.48-$4.53, narrowed from the prior outlook of $4.40-$4.55.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
At this time, Conmed has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Conmed has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Conmed belongs to the Zacks Medical - Dental Supplies industry. Another stock from the same industry, Cardinal Health (CAH), has gained 0.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Cardinal reported revenues of $64.01 billion in the last reported quarter, representing a year-over-year change of +22.4%. EPS of $2.55 for the same period compares with $1.88 a year ago.
Cardinal is expected to post earnings of $2.31 per share for the current quarter, representing a year-over-year change of +19.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +0%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cardinal. Also, the stock has a VGM Score of A.
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CONMED Corporation (CNMD): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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