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Integra (IART) Preliminary Q3 Results Show Recovery in Sales

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Integra LifeSciences Holdings Corporation (IART - Free Report) recently announced preliminary revenues for third-quarter 2020. The company is scheduled to release detailed financial results for the period on Oct 28.

Integra projects third-quarter 2020 revenues in the band of $368-$370 million. This indicates an organic revenue decline of 1.8% to 2.7% on a reported basis. The Zacks Consensus Estimate for the same is currently pegged at $343 million.

This preliminary figure marks a significant recovery from the second quarter reported decline of 32.6% and organic decline of 31.3% year over year. According to the company, the sales improvement in the third quarter was broad-based across the major franchises.

Following this announcement, shares of the company improved 0.7% to $48.81 at yesterday’s close.

2020 Guidance

Integra LifeSciences, during the second-quarter earnings call, was upbeat about its improvement in monthly sales trends but wary about the uncertainties related to the pandemic’s impacts on the full year. Hence, the company did not provide any financial guidance for the year. For the third quarter, the company earlier noted that it does not expect the recovery rates for all its markets and product lines to be the same.

 

As of now, the Zacks Consensus Estimate for the third-quarter 2020 adjusted earnings per share is pegged at 58 cents and that for the full year is $2.80. Full-year revenues are projected at $1.53 billion.

Pandemic Synopsis

During the first two months of the first quarter, sales were in line with expectations. However, since March, as the outbreak took a graver turn, demand for the company’s surgical procedures declined significantly. This was because healthcare providers started to reallocate resources to address the surging demand caused by the COVID-19 outbreak. According to Integra, there was a dramatic sales decline that occurred as soon as surgical procedures were postponed on a wide scale.

In the third quarter, Integra, despite projecting year-over-year declines, assured about the magnitude of this decline not at the same rate as in the second quarter as many procedures in which its products are employed cannot be deferred for more than 90 days.

Price Performance

Shares of the company have improved 4.3% in the past three months compared with the industry’s 7.8% rise.

Zacks Rank & Key Picks

Currently, Integra carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the broader medical space include QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Globus Medical, Inc. (GMED - Free Report) .

QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher’s long-term earnings growth rate is estimated at 15.5%. It currently carries a Zacks Rank #2 (Buy).

Globus Medical’s long-term earnings growth rate is estimated at 13%. The company presently carries a Zacks Rank #2.

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