Courtesy of Benzinga.
Shares of Conmed (NASDAQ: CNMD) were halted prior to a series of bearish announcements and scheduled to resume for trade at 7:30 a.m. ET. Shares are yet to exchange hands, but the open may be be weak given that the asking price is $39.50 and the bid is $24.21, versus a $42.72 close.
No Strategic Alternatives
The Board of Directors ended the review of strategic alternatives. The release stated that, “strategic alternatives available at this time do not adequately reflect the intrinsic value of the Company or its future growth prospects.”
This is perhaps the most bearish item of the release; many investors were speculating that the company would be acquired or divest assets.
Related Link: iPad Slump Leads To A Difficult Q3 For Apple
Earnings And Revenue Guidance Cut
Full year earnings was reduced by 2.6 percent. Earnings are now expected between $1.85 and $1.95 versus $1.90 to $2.00. The new range sits mostly below the analyst estimate of $1.94.
Revenue estimate reductions were harsher than earnings – a 4.5 percent reduction. Sales are now expected to fall in the range of $735 to $745 million versus $770 to $780 million. This compares to the $766.3 million analyst estimate.
Second Quarter Results
Top and bottom line metrics missed analyst estimates by 1.6 percent and 21.3 percent, respectively. Both figures are also weaker than the same period a year ago.
The earnings release named general market weakness and an upcoming product launch as key catalysts for the slow down.
The silver lining of the report is that adjusted EBITDA margin improved 0.5 percent.
CEO Steps Down
CEO Joe Corasanti announced that he will be stepping down with former Stryker interim CEO and CFO, Curt Hartman, taking over his position. No reason was given for Corasanti’s resignation.
Posted-In: Curt Hartman Joe CorasantiEarnings News Guidance Management M&A
