Integra (IART) CSS Sales Aid, Boston Recall Hurts Growth
Integra LifeSciences IART has been gaining from new product introductions, acquisitions and strong overseas expansion. Yet, macroeconomic woes impede growth. The stock carries a Zacks Rank #3 (Hold).
Integra sees healthy demand for its industry-leading products within Codman Specialty Surgical (CSS). Within CSS management, Integra is experiencing growth, banking on strong market adoption of programmable valves and advanced energy (key revenue-generating products are CUSA Capital, Mayfield, DuraGen, Certas Plus programmable valves, Bactiseal catheters and instruments).
Integra's Tissue Technologies business is continuously gaining traction on efficient growth strategies and a better price management policy. Particularly, the wound reconstruction subcategory within Tissue Technologies is rebounding fast, banking on robust sales in Integra Skin and SurgiMend.
Further, in spite of facing foreign exchange fluctuations across its non-U.S. business, Integra is successfully broadening its international footprint through certain key developments on the overseas front. International sales within Codman Specialty Surgical have been strong recently, driven by growth in the core neurosurgery business and strength in certain key markets such as Europe, Canada, China and Japan. Per Integra, the acquisition of Codman is effectively doubling the company’s international business within the CSS segment.
Integra LifeSciences Holdings Corporation Price
Integra LifeSciences Holdings Corporation price | Integra LifeSciences Holdings Corporation Quote
However, a challenging macroeconomic scenario, specifically in the Asia Pacific and Europe, is driving higher-than-anticipated inflation in terms of raw materials and labor costs. These could also result in broader economic impacts and security concerns, affecting the company’s business through the months of 2023.
Further, in May 2023, Integra had to voluntarily recall manufacturing of its key products like PriMatrix, SurgiMend, Revize and TissueMend from its Boston, MA manufacturing facility. In the second quarter of 2023, the company reported a decline in global revenues, primarily as the result of this recall, which affected both Domestic and International sales.
This apart, a tough competitive landscape and unfavorable currency headwinds are other downsides.
Over the past year, shares of Integra have declined 15.8% against the industry’s 0.5% rise.
Key Picks
Some better-ranked stocks in the broader medical space are Haemonetics HAE, Quanterix QTRX and SiBone SIBN. While Haemonetics sports a Zacks Rank #1 (Strong Buy), Quanterix and SiBone each carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 15% in the past year. Earnings estimates for Haemonetics have increased from $3.56 to $3.74 in 2023 and $3.96 to $4.07 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 159.5% in the past year against the industry’s decline of 1.4%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s 2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 23.6% in the past year against the industry’s fall of 0.5%.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.
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Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report
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