Analyst Impressed With CONMED's Upbeat Q1 Performance and Raised Guidance, Bullish On Organic Growth

CONMED Corporation CNMD shares are trading higher after the company reported better-than-expected Q1 earnings. It reported Q1 adjusted EPS of $0.66, beating the consensus of $0.60 but down 5.7% Y/Y.

The Q1 sales came in at $295.47 million, up 21.9% (25.1% in constant currency), surpassing the consensus of $266.67 million.

The company raised FY23 revenue guidance to $1.205-$1.250 billion from $1.170-$1.220 billion expected earlier, versus the consensus of $1.19 billion.

FY23 adjusted EPS is expected to be $3.30 to $3.50, compared to its prior range of $3.20-$3.45 and the consensus of $3.32.

Needham says CNMD's revenue growth improved as it caught up on its $30 million order backlog after weak 4Q22 results caused by a warehouse software issue. 

"Given all the moving parts, CNMD's true underlying growth in 1Q23 is difficult to decipher, but we have confidence that it can return to high-single-digit organic growth with significant operating margin improvement in future quarters," the analyst writes.

It reiterated the Buy rating with an increased price target of $134 from $122 due to peer multiple expansion.

Keybanc Maintains Overweight with a price target of $131 from $124. Wells Fargo maintains an Equal-Weight, raising the price target from $96 to $119.

Piper Sandler maintains an Overweight, raising the price target from $118 to $128. Stifel increased the price target from $118 to $130 with a Buy rating.

Price Action: CNMD shares are up 13.10% at $129.03 on the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorEarningsLarge CapNewsGuidanceHealth CarePrice TargetAnalyst RatingsMoversTrading IdeasGeneralExpert Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!