CONMED Withdraws FY22 Guidance Due To Disruptions Associated With Software Implementation

CONMED Corp 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.