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Integra (IART) Preliminary Q4 Reported Sales Show Recovery

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Integra LifeSciences Holdings Corporation (IART - Free Report) recently announced preliminary revenues for fourth-quarter and full-year 2020. The company is scheduled to release detailed financial results for the period on Feb 18.

As per the preliminary report, fourth-quarter 2020 revenues are estimated in the band of $387-$389 million. This indicates a fall of 2.1-1.6% on a reported basis and a decline of 1.9-1.4% on an organic basis. The Zacks Consensus Estimate for the same is currently pegged at $387.8 million.

This preliminary figure marks a recovery from the third quarter’s reported decline of 2.3%. However, organic sales loss is expected to widen or remain marginally at par with the sequentially last-reported quarter’s decline of 1.5%.

Integra expects full-year 2020 revenues in the band of $1.370-$1.372 billion. This indicates a fall of 9.7-9.6% on a reported basis and a decline of 8.8-8.7% on an organic basis. The Zacks Consensus Estimate for the same is currently pegged at $1.37 billion, which is in line with the lower end of the company’s preliminary results.

Following this announcement, shares of the company improved 3.2% to $67.78 at yesterday’s close.

A Brief Q4 Analysis

Integra, earlier this year, talked about strong and sustainable performance in Asia Pacific. In the last-reported quarter, the company’s performance in Japan was boosted by product launches and the successful completion of the General Surgical business from an indirect model to the company’s direct commercial team. In China, a significant sequential improvement was observed. Given these positive results, the company expected these regions to continue to register growth in the fourth quarter as well.

Outside Asia Pacific, fourth-quarter revenues from Germany is expected to remain robust, boosted by strong demand for DuraGen and programmable valves.

Meanwhile, the company’s preliminary projection of a lesser decline in reported revenues compared to the sequentially last-reported quarter lifts our confidence.

2021 Guidance

Although the company expects to record business recovery in 2021, it remains wary about the continued uncertainties related to the pandemic’s impacts.

As of now, the Zacks Consensus Estimate for first-quarter 2021 adjusted earnings per share is pegged at 65 cents and that for the full year is $2.90. Full-year revenues are projected at $1.49 billion.

Price Performance

Shares of the company have gained 39.9% in the past three months compared with the industry’s 3.6% growth and the S&P 500’s 9.5% rise.

Zacks Rank & Key Picks

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

Some better-ranked stocks from the broader medical space are Hologic, Inc. (HOLX - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Patterson Companies, Inc. (PDCO - Free Report) .

Hologic’s long-term earnings growth rate is estimated at 17.4%. The company presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

IDEXX’s long-term earnings growth rate is estimated at 15.8%. It currently carries a Zacks Rank #2 (Buy).

Patterson’s long-term earnings growth rate is estimated at 11.1%. The company presently carries a Zacks Rank #2.

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