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Investing.com - Needham maintained its Hold rating on CONMED (NYSE:CNMD) following the medical technology company’s third-quarter 2025 financial results that exceeded analyst expectations. According to InvestingPro data, CONMED is currently trading at a P/E ratio of 12.58, with a diluted EPS of $3.54 over the last twelve months.
CONMED reported revenue growth of 6.3% in the third quarter, an improvement from 2.9% growth in the second quarter. The company benefited from an extra selling day during the quarter, which contributed approximately 100-150 basis points to its growth rate. This performance outpaces CONMED’s 3.94% revenue growth over the last twelve months, with annual revenue reaching $1.33 billion.
The company’s Capital Products segment showed a rebound in growth after five consecutive quarters of decline, though CONMED continues to work through supply chain challenges. Both gross margin and operating margin decreased by 40 basis points year-over-year. InvestingPro data shows CONMED maintains a gross profit margin of 56.05%, while its current ratio of 2.23 indicates liquid assets exceed short-term obligations.
Management narrowed its full-year 2025 revenue and earnings per share guidance. Additionally, CONMED announced it would suspend dividend payments in favor of share repurchases, with plans to buy back at least $25 million in shares annually beginning in 2026. This marks a significant shift for the company, which according to InvestingPro has maintained dividend payments for 14 consecutive years, with a current dividend yield of 1.8%.
Needham acknowledged the third-quarter results represented "a step in the right direction" but maintained its Hold rating, indicating it would wait for "more consistent mid-single digit growth" before considering an upgrade. The stock is currently trading near its 52-week low, with InvestingPro analysis suggesting the company is significantly undervalued compared to its Fair Value. Analysts have set price targets ranging from $57 to $68, implying potential upside of 27%.
In other recent news, CONMED Corporation reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.08, exceeding the forecasted $1.05. Additionally, CONMED reported revenue of $338 million, surpassing the expected $334.71 million. These results highlight the company’s strong financial performance in the recent quarter. Despite these positive earnings and revenue figures, broader market conditions have influenced investor sentiment. Analysts had anticipated these figures, and the company managed to outperform these projections. This recent development showcases CONMED’s ability to navigate market challenges effectively.
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