Robust revenue growth for CNMD?
ConMed (CNMD) expects to report revenue growth in the range of 5%–6.5% on a reported basis and in the range of 4.0%–5.0% on a CC (constant currency) basis for fiscal 2018. The company has projected a favorable top-line impact of 100–150 basis points, resulting from foreign exchange movements for fiscal 2018.
In 2017, ConMed reported a ~4.3% YoY (year-over-year) rise in revenues on a CC basis, which would be in line with the average revenue growth in the medical technology industry. ConMed, however, is focusing on accelerating its revenues at a faster rate than that of the overall med-tech segment.
Conmed currently provides its products in 17 countries through the direct sales approach and in more than 100 countries through the indirect sales approach.
Wall Street analysts have projected ConMed’s fiscal 2018 revenues to be close to $834 million, which would be a YoY rise of approximately 4.7%. By comparison, peers Abbott Laboratories (ABT), Zimmer Biomet (ZBH), and Stryker (SYK) are expected to report revenues ~$30.8 billion, ~$8.0 billion, and ~$13.5 billion, respectively, in fiscal 2018.
Orthopedics business turnaround
ConMed managed to report revenues of ~$429 million, for its orthopedics segment, which represents a 2.1% decline on a YoY basis. While the US market contributed nearly 39% of the company’s orthopedic business revenues, the remaining 71% of revenues came from the sale of products in international markets.
In 4Q17, the company reported ~5.3% YoY rise in revenues from its orthopedics business in the US, driven by product innovation, the development of its salesforce team, and its robust commercial strategy. This positive upturn follows almost six quarters of YoY top-line declines witnessed by the domestic orthopedics business.
In the next and final part of this series, we’ll discuss the 2018 margin growth prospects for ConMed in greater detail.