CONMED Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that CONMED Corporation (NYSE:CNMD) filed its full-year result this time last week. The early response was not positive, with shares down 7.5% to US$66.43 in the past week. CONMED reported US$1.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$4.25 beat expectations, being 5.6% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for CONMED

Taking into account the latest results, the consensus forecast from CONMED's seven analysts is for revenues of US$1.36b in 2025. This reflects a modest 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 6.7% to US$4.00 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.40b and earnings per share (EPS) of US$4.69 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the US$77.29 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values CONMED at US$91.00 per share, while the most bearish prices it at US$70.00. This is a very narrow spread of estimates, implying either that CONMED is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that CONMED's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that CONMED is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CONMED. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on CONMED. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CONMED going out to 2027, and you can see them free on our platform here..

Even so, be aware that CONMED is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.