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Integra (IART) Up 1.5% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Integra LifeSciences (IART - Free Report) . Shares have added about 1.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Integra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Integra (IART - Free Report) Q2 Earnings Top Estimates, 2021 Guidance Up
Integra LifeSciences Holdings Corporation (IART - Free Report) delivered adjusted earnings per share of 79 cents in the second quarter of 2021, up 139.4% from a year ago. The metric surpassed the Zacks Consensus Estimate by 17.9%.
The adjustment excludes the impact of certain non-recurring charges like divestiture, acquisition and integration, intangible asset amortization expenses and structural optimization charges, among others.
GAAP earnings per share for the second quarter were 41 cents compared with break-even earnings in the year-ago quarter.
Revenue Discussion
Total revenues in the reported quarter improved 50.8% year over year to $389.9 million. The metric exceeded the Zacks Consensus Estimate by 3.7%. Organically, revenues improved 48.7 % year over year.
Total reported revenues include $17.7 million from the acquisition of ACell, which was completed on Jan 20, 2021.
Notably, the quarter’s figure exceeds the company’s second-quarter sales estimate of $372-$378 million announced in April.
Segmental Details
Coming to product categories, revenues from the Codman Specialty Surgical (“CSS”) segment rose 51.3% year over year on a reported basis to $256.8 million (organically, up 49.5%).This improvement can be attributed to double-digit organic growth in global neurosurgery and instruments. The segment also reported double-digit growth in international sales across all regions compared to the prior year.
Tissue Technologies revenues totaled $133.2 million in the second quarter, up 49.8% year over year on a reported basis and 47.1% on an organic basis. This growth was led by strength in burn, trauma and surgical reconstruction. During the second quarter, sales in wound reconstruction improved 52% on an organic basis compared to the prior year. Sales in private label increased double digits in the second quarter owing to recovery in demand from the company’s partners.
Margin Trend
In the reported quarter, gross profit totaled $238.7 million, up 55.8% year over year. Gross margin expanded 199 basis points (bps) to 61.2%. The company-adjusted gross margin of 68.1% rose 190 bps.
Selling, general and administrative expenses surged 40% to $162.6 million in the quarter under review, while research and development expenses rose 34.8% to $20.1 million.
Overall, adjusted operating profit was $56.1 million, up 153% year over year. Adjusted operating margin saw a 581-bp expansion year over year to 14.4%.
Financial Position
Integra exited the second quarter of 2021 with cash and cash equivalents of $397.4 million, down from $408.9 million at the end of first-quarter 2021.
Cumulative net cash flow from operating activities at the end of the second quarter was $160.4 million compared with $53.9 million in the year-ago period.
2021 Outlook
The company has raised its financial guidance for 2021, taking into account pandemic-related uncertainty across all markets and product lines.
For 2021, the company raised its revenue guidance to $1.54 billion to $1.55 billion from the earlier-projected $1.53 billion to $1.54 billion. The Zacks Consensus Estimate for the same is pegged at 1.53 billion.
The company currently expects to report at the high end of the adjusted earnings per diluted share guidance of $2.98 to $3.05 for 2021, an improvement from the previously announced range of $2.86 to $2.93.The Zacks Consensus Estimate for the same is pegged at $2.92.
Q3 Outlook
For the third quarter of 2021, Integra expects revenues in the range of $382 million to $389 million. The Zacks Consensus Estimate for the same is pegged at 389.9 million.
Adjusted earnings per diluted share are estimated in the range of 71 cents to 74 cents, the Zacks Consensus Estimate for which is pegged at 75 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Integra has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Integra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Integra (IART) Up 1.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Integra LifeSciences (IART - Free Report) . Shares have added about 1.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Integra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Integra (IART - Free Report) Q2 Earnings Top Estimates, 2021 Guidance Up
Integra LifeSciences Holdings Corporation (IART - Free Report) delivered adjusted earnings per share of 79 cents in the second quarter of 2021, up 139.4% from a year ago. The metric surpassed the Zacks Consensus Estimate by 17.9%.
The adjustment excludes the impact of certain non-recurring charges like divestiture, acquisition and integration, intangible asset amortization expenses and structural optimization charges, among others.
GAAP earnings per share for the second quarter were 41 cents compared with break-even earnings in the year-ago quarter.
Revenue Discussion
Total revenues in the reported quarter improved 50.8% year over year to $389.9 million. The metric exceeded the Zacks Consensus Estimate by 3.7%. Organically, revenues improved 48.7 % year over year.
Total reported revenues include $17.7 million from the acquisition of ACell, which was completed on Jan 20, 2021.
Notably, the quarter’s figure exceeds the company’s second-quarter sales estimate of $372-$378 million announced in April.
Segmental Details
Coming to product categories, revenues from the Codman Specialty Surgical (“CSS”) segment rose 51.3% year over year on a reported basis to $256.8 million (organically, up 49.5%).This improvement can be attributed to double-digit organic growth in global neurosurgery and instruments. The segment also reported double-digit growth in international sales across all regions compared to the prior year.
Tissue Technologies revenues totaled $133.2 million in the second quarter, up 49.8% year over year on a reported basis and 47.1% on an organic basis. This growth was led by strength in burn, trauma and surgical reconstruction. During the second quarter, sales in wound reconstruction improved 52% on an organic basis compared to the prior year. Sales in private label increased double digits in the second quarter owing to recovery in demand from the company’s partners.
Margin Trend
In the reported quarter, gross profit totaled $238.7 million, up 55.8% year over year. Gross margin expanded 199 basis points (bps) to 61.2%. The company-adjusted gross margin of 68.1% rose 190 bps.
Selling, general and administrative expenses surged 40% to $162.6 million in the quarter under review, while research and development expenses rose 34.8% to $20.1 million.
Overall, adjusted operating profit was $56.1 million, up 153% year over year. Adjusted operating margin saw a 581-bp expansion year over year to 14.4%.
Financial Position
Integra exited the second quarter of 2021 with cash and cash equivalents of $397.4 million, down from $408.9 million at the end of first-quarter 2021.
Cumulative net cash flow from operating activities at the end of the second quarter was $160.4 million compared with $53.9 million in the year-ago period.
2021 Outlook
The company has raised its financial guidance for 2021, taking into account pandemic-related uncertainty across all markets and product lines.
For 2021, the company raised its revenue guidance to $1.54 billion to $1.55 billion from the earlier-projected $1.53 billion to $1.54 billion. The Zacks Consensus Estimate for the same is pegged at 1.53 billion.
The company currently expects to report at the high end of the adjusted earnings per diluted share guidance of $2.98 to $3.05 for 2021, an improvement from the previously announced range of $2.86 to $2.93.The Zacks Consensus Estimate for the same is pegged at $2.92.
Q3 Outlook
For the third quarter of 2021, Integra expects revenues in the range of $382 million to $389 million. The Zacks Consensus Estimate for the same is pegged at 389.9 million.
Adjusted earnings per diluted share are estimated in the range of 71 cents to 74 cents, the Zacks Consensus Estimate for which is pegged at 75 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Integra has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Integra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.