Conmed Corp (NYSE:CNMD) shares soared 6.90% in pre-market trading on Thursday following the release of its better-than-expected first-quarter 2025 earnings report. The medical technology company reported robust financial performance, despite ongoing supply chain challenges and recent analyst price target reductions.

The company's Q1 results showed a year-over-year sales increase of 2.9% as reported and 3.8% in constant currency, slightly exceeding guidance. Adjusted net income rose by 19.6%, with adjusted diluted earnings per share increasing by 20.1% to $0.95. Conmed's orthopedics segment saw 3.9% growth in constant currency, driven by strong international sales, while the general surgery segment grew by 3.8%.

Investors were particularly encouraged by positive developments in Conmed's product lines, especially the strong demand for BioBrace, which experienced double-digit sales growth in foot and ankle products. The company also received FDA clearance for a new delivery device for BioBrace in rotator cuff repair, potentially enhancing surgical procedures. Additionally, management reported progress in addressing supply chain issues, with a decline in the number of SKUs on backorder and expectations for further improvements by year-end.

However, the pre-market surge comes despite several analysts cutting their price targets for Conmed. Jefferies lowered its target from $75 to $58, Needham reduced its target from $91 to $61, and Wells Fargo cut its target from $70 to $57. These adjustments likely reflect ongoing concerns about supply chain challenges and potential tariff impacts, particularly from China. Despite these headwinds, the market appears to be focusing on Conmed's strong quarterly performance and positive outlook for its key growth drivers.