We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Integra (IART) Down 8.1% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Integra LifeSciences (IART - Free Report) . Shares have lost about 8.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Integra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Integra Q1 Earnings Beat Estimates, Gross Margin Down
Integra delivered adjusted earnings per share of 69 cents in the first quarter of 2021, up 43.8% from a year ago. The metric surpassed the Zacks Consensus Estimate by 23.2%.
The adjustment excludes the impact of certain non-recurring charges like structural optimization, divestiture, acquisition and integration, intangible asset amortization expenses, among others.
GAAP earnings per share for the first quarter was 53 cents compared with the year-ago quarter of 11 cents.
Revenue Discussion
Total revenues in the reported quarter improved 1.6% year over year to $360.1 million. The metric exceeded the Zacks Consensus Estimate by 2.9%. Organically, revenues improved 2.9% year over year.
Total reported revenues include $14.1 million from the acquisition of ACell, which was completed on Jan 20, 2021.
Notably, the quarter’s figures were above the high end of the company’s preliminary estimate of $345-$355 million announced in February.
Segmental Details
Coming to product categories, revenues from the CSS segment rose 4.2% year over year on a reported basis to $241.3 million (organically, 3.3%). However, the segment’s global neurosurgery sales were flat on an organic basis compared to the prior year. Sales in advanced energy increased mid-single digits. However, strength in Advanced Energy was offset by flat-to-low single-digit declines in dural access and repair, CSF management and neuromonitoring.
Tissue Technologies revenues totaled $118.8 million in the first quarter, down 3.3% year over year on reported basis and up 2.2% on organic basis. During the first quarter, sales in wound reconstruction improved 22.7% compared to the prior year. Sales in private label declined 0.5% in the first quarter. However, international sales of Tissue Technology increased mid-single digits on an organic basis.
Margin Trend
In the reported quarter, gross profit totaled $214.2 million, down 2.9% year over year. Gross margin contracted 282 basis points (bps) to 59.5%. The company-adjusted gross margin of 67.3% was also down 100 bps.
Selling, general and administrative expenses contracted 5.6% to $156.6 million in the quarter under review, while research and development expenses rose 7.5% to $22.4 million.
Overall, adjusted operating profit was $35.2 million, up 3.4% year over year. Adjusted operating margin saw a 17-bp expansion year over year to 9.8%.
Financial Position
Integra exited the first quarter of 2021 with cash and cash equivalents of $408.9 million, down from $470.2 million at the end of fourth-quarter 2020.
Cumulative net cash flow from operating activities at the end of the first quarter was $69.1 million compared with $203.8 million at the end of the last reported quarter.
2021 Outlook
The company has raised its financial guidance for fiscal 2021.
For 2021, the company raised revenues guidance by $5 million to $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 $2.86 to $2.93 for fiscal 2021. The Zacks Consensus Estimate for the same is pegged at $2.89.
However, the drop in year-over-year Tissue Technologies revenues is disappointing. The contraction in gross margin looks worrying as well.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Integra has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Integra (IART) Down 8.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Integra LifeSciences (IART - Free Report) . Shares have lost about 8.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Integra due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Integra Q1 Earnings Beat Estimates, Gross Margin Down
Integra delivered adjusted earnings per share of 69 cents in the first quarter of 2021, up 43.8% from a year ago. The metric surpassed the Zacks Consensus Estimate by 23.2%.
The adjustment excludes the impact of certain non-recurring charges like structural optimization, divestiture, acquisition and integration, intangible asset amortization expenses, among others.
GAAP earnings per share for the first quarter was 53 cents compared with the year-ago quarter of 11 cents.
Revenue Discussion
Total revenues in the reported quarter improved 1.6% year over year to $360.1 million. The metric exceeded the Zacks Consensus Estimate by 2.9%. Organically, revenues improved 2.9% year over year.
Total reported revenues include $14.1 million from the acquisition of ACell, which was completed on Jan 20, 2021.
Notably, the quarter’s figures were above the high end of the company’s preliminary estimate of $345-$355 million announced in February.
Segmental Details
Coming to product categories, revenues from the CSS segment rose 4.2% year over year on a reported basis to $241.3 million (organically, 3.3%). However, the segment’s global neurosurgery sales were flat on an organic basis compared to the prior year. Sales in advanced energy increased mid-single digits. However, strength in Advanced Energy was offset by flat-to-low single-digit declines in dural access and repair, CSF management and neuromonitoring.
Tissue Technologies revenues totaled $118.8 million in the first quarter, down 3.3% year over year on reported basis and up 2.2% on organic basis. During the first quarter, sales in wound reconstruction improved 22.7% compared to the prior year. Sales in private label declined 0.5% in the first quarter. However, international sales of Tissue Technology increased mid-single digits on an organic basis.
Margin Trend
In the reported quarter, gross profit totaled $214.2 million, down 2.9% year over year. Gross margin contracted 282 basis points (bps) to 59.5%. The company-adjusted gross margin of 67.3% was also down 100 bps.
Selling, general and administrative expenses contracted 5.6% to $156.6 million in the quarter under review, while research and development expenses rose 7.5% to $22.4 million.
Overall, adjusted operating profit was $35.2 million, up 3.4% year over year. Adjusted operating margin saw a 17-bp expansion year over year to 9.8%.
Financial Position
Integra exited the first quarter of 2021 with cash and cash equivalents of $408.9 million, down from $470.2 million at the end of fourth-quarter 2020.
Cumulative net cash flow from operating activities at the end of the first quarter was $69.1 million compared with $203.8 million at the end of the last reported quarter.
2021 Outlook
The company has raised its financial guidance for fiscal 2021.
For 2021, the company raised revenues guidance by $5 million to $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 $2.86 to $2.93 for fiscal 2021. The Zacks Consensus Estimate for the same is pegged at $2.89.
However, the drop in year-over-year Tissue Technologies revenues is disappointing. The contraction in gross margin looks worrying as well.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Integra has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, 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.