The Utica, N.Y.–based minimally invasive surgical device and equipment maker said yesterday that it now expects Q1 2020 revenue growth in the 2–4% range, versus the company’s previous 5–6% guidance. The company also expects a favorable tax rate adjustment during the quarter that could help offset the impact, so adjusted diluted net earnings per share growth rate will be in the mid-single digits compared to the previously provided guidance range of high-single-digit to low-double-digit growth.
Conmed’s stock has lost about a fifth of its value since COVID-19 fears started driving the markets down in late February. Many other medical device companies are in the same boat.
Analysts told MassDevice this week that medtech companies at least in the short-term could see a drop in medical procedures using their devices. Healthcare systems could become increasingly focused on taking care of those infected with the virus versus performing elective procedures such as hip or knee replacements.
It may even become more difficult for heart attack and stroke patients to get the focused care they need in a timely fashion, according to Debbie Wang, a senior analyst at Morningstar who follows the medical device industry.
On the flip side, there are companies such as 3M (NYSE:MMM), which has only seen its stock decline about 6% during the pandemic. 3M has factories running full throttle around the clock making N95 respirator masks and other protective products needed to fight the virus, but the Maplewood, Minn.–based manufacturing conglomerate says demand is still exceeding supply.