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Integra LifeSciences Estimates Strong Revenue Figures for Q4

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Integra LifeSciences Holdings Corporation (IART - Free Report) reported preliminary, unaudited revenues of approximately $365 million for the fourth quarter of 2017, up 40% year over year. The preliminary revenue figure is above the Zacks Consensus Estimate of $352 million.

Per management, the stellar quarterly performance came on the back of strong organic growth at the Specialty Surgical Solutions as well as Orthopedics and Tissue Technologies businesses. Moreover, outperformance in both the Codman Neurosurgery and Derma Sciences acquisitions, rapid recovery in the hurricane-hit Puerto Rico manufacturing facility along with enhanced performance in dural repair contributed to the top line.

Integra LifeSciences expects fourth-quarter adjusted earnings per share (EPS) to surpass the high end of the fourth-quarter guidance. The Zacks Consensus Estimate for fourth-quarter EPS is pegged at 55 cents.

However, the estimate revision trend has been unfavorable as three estimates moved south over the past two months, with no movement in the opposite direction. In fact, fourth-quarter estimates decreased by a penny to earnings of 55 cents per share. The stock has a Zacks Rank #3 (Hold).

Integra LifeSciences Holdings Corporation Price and EPS Surprise



Share Price Movement

Over the past year, Integra Lifesciences has been trading above the broader industry. The stock has rallied 18.8% as compared to the industry’s gain of 0.9%. We believe the company’s recent product diversification bolstered investors’ confidence, thereby boosting the stock price. Of late, within the Orthopedics and Tissue Technologies segment, the company launched several regenerative products for the surgical reconstruction market. In the third quarter of 2017, the company registered mid-single digit growth in Regenerative Technologies franchise, primarily banking on the addition of Derma Sciences and strong growth in patient skin portfolio.

Within tissue ablation, the global launch of CUSA Clarity is getting solid response in the United States and overseas. Integra LifeSciences expects all these products to drive growth in 2017 and beyond.

We are also optimistic about the fact that Integra LifeSciences has successfully witnessed certain key overseas developments despite facing foreign exchange fluctuations across its international business. Also, the company has adopted several near-term objectives under its three-pillar strategy. Management also expects to gain market traction through strategic partnerships and acquisitions.

Key Picks

A few better-ranked stocks in the broader medical sector are Integer Holdings Corporation (ITGR - Free Report) , Bio-Rad Laboratories, Inc. (BIO - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .

Bio-Rad Laboratories flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The company has a long-term expected earnings growth rate of 25%.

Integer Holdings has a long-term expected earnings growth rate of 15%. The stock carries a Zacks Rank #2 (Buy).

Intuitive Surgical has a long-term expected earnings growth rate of 9.2%. The stock carries a Zacks Rank #2.

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