Conmed Q1 EPS Beats Estimates; Refinancing to Add $0.10 Interest Expense
Conmed posted Q1 adjusted EPS of $0.89 on $317M revenue, beating consensus of $0.82 despite a 1.3% sales decline from exiting gastroenterology lines. The company plans bank debt refinancing expected to add at least $0.10 in annual interest expense but maintains full-year EPS guidance of $4.30–4.45.
1. Q1 Financial Results
Conmed posted Q1 net income of $13.8 million and adjusted EPS of $0.89 on $317 million in revenue, surpassing analyst expectations of $0.82. Total sales declined 1.3% year-over-year due to the strategic exit from the gastroenterology product lines.
2. Debt Refinancing Impact
Management is refinancing maturing obligations into bank debt to avoid low-multiple convertible notes, which will increase interest expense by at least $0.10 per share annually. Despite this headwind, the company reaffirmed its full-year EPS guidance of $4.30 to $4.45.
3. Growth Drivers and Guidance
The AirSeal attachment rate remained within the guided 10%–20% range, and 20 states now enforce smoke-free operating rooms, supporting the smoke evacuation business. Strong performance in orthopedics, BioBrace, AirSeal penetration in laparoscopic procedures, and international markets is expected to drive Q2 revenue acceleration.