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CONMED Withdraws FY22 Guidance Due To Disruptions Associated With Software Implementation

Benzinga · 11/15/2022 12:43
  • CONMED Corp (NYSE:CNMD) is withdrawing its FY22 financial outlook, citing a temporary disruption resulting from implementing new warehouse management software.
  • In recent weeks, the company began implementing new software designed to increase the efficiency and performance of its primary distribution facility. 
  • The implementation of this new software created shipping disruptions that lasted longer than initially projected. 
  • CONMED cannot fully assess the impact on fourth-quarter sales and profitability as it continues to incur costs while working to reduce the shipping backlog. 
  • Daily shipment volumes have returned to normal levels, and the company has reduced the shipping backlog from a peak of approximately $35 million last week to approximately $28 million today. 
  • CONMED believes the backlog of open orders will be shipped in the coming weeks and anticipates the impact on business performance will be limited to the fourth quarter of 2022. 
  • CONMED expected FY22 sales of $1.1-$1.115 billion, with adjusted EPS of $3.21-$3.28, versus the consensus of $1.11 billion and $3.28, respectively.
  • For the full-year 2023, the company expects reported revenue of $1.170-$1.230 billion (consensus $1.21 billion) and adjusted EPS of $3.20-$3.50 (consensus $3.39).
  • Price Action: CNMD shares traded higher by 1.96% at $90.84 on the last check Tuesday.