LARGO, FL—CONMED Corporation (NYSE:CNMD), a medical technology company specializing in electromedical and electrotherapeutic apparatus, announced a significant change in its executive team. The company revealed that Eric B. Staves, Vice President and Corporate Controller, is set to depart on September 27, 2024, to pursue a new executive opportunity.
Following Staves' departure, Kimberly A. Lockwood will step in as Interim Corporate Controller starting September 30, 2024. Lockwood, who has been with CONMED since 2005, previously served as the Director of Financial Reporting & Controls.
Prior to her tenure at CONMED, she worked with PricewaterhouseCoopers LLP’s Assurance and Business Advisory Services group. Lockwood is a certified public accountant with a Bachelor of Science degree in Accounting from Le Moyne College.
In addition to Lockwood's appointment, Todd W. Garner, the Executive Vice President of Finance and Chief Financial Officer, will take over the role of Principal Accounting Officer. Terence M. Berge, the retired Vice President and Corporate Controller, will continue as Special Advisor to the company, offering support to Lockwood and the organization during the transition.
In other recent news, CONMED Corporation reported a 4.5% increase in its second-quarter fiscal 2024 sales, amounting to $332 million, and a significant rise in GAAP net income to $30 million.
However, due to supply constraints in the orthopedic segment, the company revised its full-year revenue guidance downward to between $1.305 billion and $1.315 billion. Adjusted EPS growth expectations now range from 14.5% to 16.5%. Amid these recent developments, CEO Curt Hartman expects supply chain issues to be resolved by the fourth quarter.
In addition, CONMED Corporation announced a quarterly dividend of $0.20 per share, reflecting the company's ongoing commitment to its investors and its financial stability. This dividend is payable in the first week of October 2024 to shareholders on record as of mid-September 2024.
Furthermore, Stanley W. Peters, President of Advanced Surgical & Advanced Endoscopic Technologies, is set to leave the company on August 31, 2024, according to a recent filing with the Securities and Exchange Commission.
The company has not yet announced a successor or any interim leadership plans for the division. Despite Peters' departure, no immediate changes to CONMED's operations or strategic direction have been reported.
InvestingPro Insights
As CONMED Corporation (NYSE:CNMD) undergoes executive team changes, investors may find value in the latest financial metrics and analyst insights from InvestingPro. The company boasts a strong Piotroski Score of 9, indicating a healthy financial condition, which could be reassuring amidst leadership transitions. Additionally, CONMED has upheld its dividend payments for 13 consecutive years, reflecting a commitment to shareholder returns even as it navigates industry challenges.
Despite recent executive shifts, CONMED's financial health appears robust, with liquid assets surpassing short-term obligations, suggesting the company is well-positioned to manage near-term financial commitments. However, it's important to note that analysts have tempered their earnings expectations for the upcoming period, with eight analysts revising their projections downward. This, coupled with a high P/E ratio relative to near-term earnings growth, may signal caution for investors seeking immediate returns.
For those interested in a deeper dive into CONMED's financials, the following InvestingPro Data highlights the company's market stance: a market cap of $2.32 billion, a P/E ratio of 23.38, and a 12.02% revenue growth over the last twelve months as of Q2 2024. These figures underscore CONMED's market resilience and potential for growth. For further analysis and more InvestingPro Tips, including the company's profitability forecast for this year, interested parties can visit: https://www.investing.com/pro/CNMD. Currently, there are 6 additional tips listed on InvestingPro that could provide investors with a more comprehensive understanding of CONMED's financial outlook and investment potential.
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