Conmed Corp (CNMD) Tops Q3 EPS by 3c, Comments on Outlook
Conmed Corp (NASDAQ: CNMD) reported Q3 EPS of $0.43, $0.03 better than the analyst estimate of $0.40. Revenue for the quarter came in at $181.9 million versus the consensus estimate of $184.08 million.Conmed Corp reaffirmed FY2012 guidance.
Outlook
"CONMED has generated significant earnings and margin improvement through the first nine months of 2012, even with the lingering effects of a slowly growing world economy. For the fourth quarter of 2012 we expect sales and earnings consistent with previous guidance," continued Mr. Corasanti. "Specifically, we anticipate fourth quarter 2012 sales to approximate $199 - $204 million and adjusted earnings per share to be in the range of $0.48 - $0.52. Based on this outlook for the fourth quarter, we are narrowing our guidance for full year 2012 although it remains within the previously provided wider ranges. We now expect full year 2012 sales of $765 - $770 million and adjusted diluted earnings per share of $1.76 - $1.80."
"As we look forward to 2013, we are cognizant of external headwinds from the continued softness of the world economy causing just modest increases in healthcare utilization, the effects of the 2.3% excise tax on medical devices sold in the United States, and foreign currency exchange rates which are less favorable than the FX rates at which we hedged our sales in 2012. While we believe we will be able to offset these challenges through the introduction of new products and the continuation of our announced cost efficiency programs, the anticipated earnings per share growth in 2013 is expected to be approximately 5% compared to the 15%, which we would normally expect without the headwinds," noted Mr. Corasanti.
"Adjusted earnings per share for 2013 is expected to approximate $1.80 - $1.90 while 2013 sales is expected to be in the range of $785 - $795 million," continued Mr. Corasanti. "Effectively, these external matters have caused us to re-set the base from which management will target earnings growth of approximately 15% annually in-line with our strategic plan."
The sales and earnings forecasts for fourth quarter 2012 and full year 2013 have been developed using September 2012 currency exchange rates and take into account the currency hedges entered into by the Company.
The adjusted estimates for the fourth quarter of 2012 and full year 2013 exclude unusual matters, such as the restructuring costs expected to be incurred in 2012 and 2013 due to the Viking acquisition and the related relocation of surgical video activities from Santa Barbara, California. Additionally, the Company will continue the consolidation of the Tampere, Finland location into United States facilities. Costs related to these consolidation activities are excluded from the estimates above.
For earnings history and earnings-related data on Conmed Corp (CNMD) click here.
Outlook
"CONMED has generated significant earnings and margin improvement through the first nine months of 2012, even with the lingering effects of a slowly growing world economy. For the fourth quarter of 2012 we expect sales and earnings consistent with previous guidance," continued Mr. Corasanti. "Specifically, we anticipate fourth quarter 2012 sales to approximate $199 - $204 million and adjusted earnings per share to be in the range of $0.48 - $0.52. Based on this outlook for the fourth quarter, we are narrowing our guidance for full year 2012 although it remains within the previously provided wider ranges. We now expect full year 2012 sales of $765 - $770 million and adjusted diluted earnings per share of $1.76 - $1.80."
"As we look forward to 2013, we are cognizant of external headwinds from the continued softness of the world economy causing just modest increases in healthcare utilization, the effects of the 2.3% excise tax on medical devices sold in the United States, and foreign currency exchange rates which are less favorable than the FX rates at which we hedged our sales in 2012. While we believe we will be able to offset these challenges through the introduction of new products and the continuation of our announced cost efficiency programs, the anticipated earnings per share growth in 2013 is expected to be approximately 5% compared to the 15%, which we would normally expect without the headwinds," noted Mr. Corasanti.
"Adjusted earnings per share for 2013 is expected to approximate $1.80 - $1.90 while 2013 sales is expected to be in the range of $785 - $795 million," continued Mr. Corasanti. "Effectively, these external matters have caused us to re-set the base from which management will target earnings growth of approximately 15% annually in-line with our strategic plan."
The sales and earnings forecasts for fourth quarter 2012 and full year 2013 have been developed using September 2012 currency exchange rates and take into account the currency hedges entered into by the Company.
The adjusted estimates for the fourth quarter of 2012 and full year 2013 exclude unusual matters, such as the restructuring costs expected to be incurred in 2012 and 2013 due to the Viking acquisition and the related relocation of surgical video activities from Santa Barbara, California. Additionally, the Company will continue the consolidation of the Tampere, Finland location into United States facilities. Costs related to these consolidation activities are excluded from the estimates above.
For earnings history and earnings-related data on Conmed Corp (CNMD) click here.