Steadying the Ship at ConMed: 2014 Results and 2015 Guidance

Last time we looked, ConMed was nearing the end of a difficult period in its history, with a new President/CEO and the departure of the founding Corasanti clan. So it’s interresting to read the mood music coming through from the company’s preliminary 2014 results and guidance.

Background

For the 2014 calendar year just ended, ConMed says it expects sales to land in the range $739 – $741 million with adjusted earnings per share expected to be approximately $1.90 – $1.94. For 2015, the company says it expects to achieve full year sales of $740 – $755 million and adjusted earnings per share of $1.92 – $2.02.

The adjusted estimates for 2014 exclude the costs of special charges resulting from all the shenanigans of the past year, not least restructuring, dealing with shareholder activism and those aforementioned senior management changes. ConMed says these costs will be reconciled in the Company’s earnings release for the fourth quarter of 2014 anticipated to be issued on January 27, 2015.

And just to finally add a bit of hedging to the equation, the company’s press release says adjusted estimates for earnings per share in 2015 exclude special charges for restructuring activities which “cannot currently be quantified.”

Company comments

“I am pleased that, based on our preliminary numbers, we expect to deliver results within the range of the guidance we provided last July,” stated Mr. Curt Hartman, President and CEO.

“Looking forward to 2015, I have announced a series of changes to the commercial structure of CONMED that we anticipate will reposition the Company for growth,” continued Mr. Hartman. “In addition to the announced commercial management changes, we are combining the domestic Advanced Energy and Endomechanical organizations to take advantage of our broad product offering, to increase our account coverage, to focus our innovation efforts, and to leverage our infrastructure. While some of these changes will likely cause sales disruption in the short term, the goal of these changes is to position CONMED to grow at or above market rates in all the markets we serve.”

Source: MarketWired

 

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