Surgical device maker ConMed (NSDQ:CNMD) took a major hit on Wall Street today after announcing some turnover at the top and lowering its financial outlook for the rest of the year.
ConMed announced the retirement of founder Gene Corasanti and the resignation of CEO, president and director Joseph Corasanti, handing the corner office over to Curt Hartman, former CFO and interim CEO for Stryker (NYSE:SYK), on an interim basis.
Hartman, who has been on ConMed’s board since an ugly proxy battle in March, will oversee the company until the board can find a permanent replacement, ConMed chairman Mark Tryniski said in prepared remarks. Hartman is slated to remain on the board while he fills in as CEO, but relinquished his seat on the board’s audit committee.
"We are fortunate to have an experienced board with a range of talents and are pleased that Curt has agreed to assume the interim CEO role as we undertake a comprehensive search to fill the position on a permanent basis," Tryniski said. "Curt has extensive knowledge of the medical device industry and has a track record of executive leadership that will help ConMed transition seamlessly."
The board has already formed a "search committee" to track down a longer-term chief for the ConMed, which was battered on Wall Street today after bringing down its full-year earnings estimate.
The New York-based medical device maker posted a 7% rise in profits on a 2.6% decline in revenue for its 2nd quarter. Adjusted earnings came to 47¢ per share, in line with analysts’ consensus estimate.
ConMed reported $10.3 million in profits, or 37¢ per diluted share, on sales of $188.2 million during the 3 months ended June 30. That compared with profits of $9.5 million, or 34¢ per share, on sales of $193 million during the same period last year.
But the firm lowered its earning guidance for the rest of 2014, saying it now expects to post EPS of $1.85-$1.95, down from its prior outlook of $1.90-$2.00; analysts were looking for EPS of $1.94.
CNMD shares closed down 9.3% at $38.74 apiece today. The stock is down 8.9% since the start of the year, despite a mid-April rally on news that it might be on the auction block.
