Integra Q4 Earnings Beat Estimates, Revenues Rise Y/Y, Stock Up

Integra LifeSciences Holdings Corporation IART delivered adjusted earnings per share (EPS) of 97 cents for the fourth quarter of 2024, which surpassed the Zacks Consensus Estimate by 14.1%. The metric increased 9% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The adjustment excludes the impact of certain non-recurring charges like structural optimization charges, divestiture, acquisition and integration-related charges, and EU Medical Device Regulation charges, among others.GAAP earnings per share in the fourth quarter were 25 cents, in line with the year-ago quarter’s figure.For the full year, the adjusted EPS was $2.56, down 17.4% from the 2023 reported figure.IART’s Revenue DiscussionTotal revenues in the reported quarter rose 11.5% year over year to $442.7 million. However, the metric missed the Zacks Consensus Estimate by 0.4%. Organically, revenues increased 3.5% year over year.For the full year, revenues grossed $1.61 billion, which reflected a 4.5% increase from the 2023 figure on a reported basis (down 1.3% organically).Following the announcement on Feb. 25, shares of IART climbed 12.1% to close the session at $24.72.Integra’s Revenues by SegmentsComing to product categories, revenues in the Codman Specialty Surgical (CSS) segment rose 15.8% year over year on a reported basis (organically, up 4.1%) to $314.7 million. Within this, Neurosurgery sales grew 5.1% on an organic basis as Integra was able to clear a majority of the shipping holds experienced in the third quarter and deliver growth mirroring that of the market.Integra LifeSciences Holdings Corporation Price, Consensus and EPS Surprise Integra LifeSciences Holdings Corporation price-consensus-eps-surprise-chart | Integra LifeSciences Holdings Corporation QuoteInstruments within CSS remained stable on an organic basis, as growth in hospital sales were offset by lower alternative site sales due to order timing. CSS management grew low double-digits, driven by BactiSeal and Certas Plus. In neuromonitoring, revenues increased high single digits, fueled by strong sales of the CereLink ICP monitors and Bactiseal and CerebroFlo EVD catheters. Meanwhile, the Acclarent acquisition drove the ENT reported revenue growth.Tissue Technologies revenues totaled $128 million in the fourth quarter, up 2.1% year over year on a reported basis and on an organic basis.Within this, Sales in Wound Reconstruction grew 8.2% on an organic basis, driven by low-double-digit growth in DuraSorb, MicroMatrix, Cytal and AmnioExcel and mid-single-digit growth in Integra Skin. However, sales in private label fell 16% organically.IART Margin PerformanceIn the reported quarter, gross profit totaled $249.1 million, up 10% year over year. The gross margin contracted 78 basis points (bps) to 56.2%.Selling, general and administrative expenses increased 9.4% to $178.5 million in the quarter under review, while research and development expenses rose 28.5% to $31.2 million.Overall, the adjusted operating profit was $39.3 million, up 0.7% year over year.IART’s Financial PositionIntegra exited fourth-quarter 2024 with approximately $273 million in cash plus short-term investments compared with $309 million at the end of 2023.Cumulative net cash flow from operating activities at the end of the fourth quarter of 2024 was $129.4 million compared with $139.9 million a year ago.Integra Issues 2025 and Q1 OutlookFor 2025, the company projects revenues between $1.650 billion and $1.715 billion, indicating reported growth of 2.4-6.5% and 1-5% organically. The Zacks Consensus Estimate for the same is pegged at $1.68 billion.Adjusted EPS for the year is expected to be in the range of $2.41-$2.51. The Zacks Consensus Estimate for the metric is pegged at $2.46.For the first quarter of 2025, Integra expects reported revenues in the range of $375-$385 million, suggesting reported growth of 1.6-4.4% and organic growth of (6.2%) to (4.5%). The Zacks Consensus Estimate for the same is pegged at $382.2 million.Adjusted earnings per share are expected to be in the range of 40-45 cents. The Zacks Consensus Estimate for the metric is pegged at 45 cents.Our Take on IARTIntegra finished the fourth quarter of 2024 with an earnings beat and a revenue miss. Supply challenges, implementation of the compliance master plan and spending reductions weighed on the company’s performance. Gross margin, too, contracted in the quarter, which is discouraging.On a promising note, Integra benefited from the successful integration of Acclarent as well as consistent strong growth across many parts of the portfolio. Revenues also improved sequentially, driven by robust demand for the leading brands, continued progress in global expansion and the company’s commitment to improve supply reliability. In the fourth quarter, the company scaled up and ramped up Integra Skin production in its collagen manufacturing center and achieved key milestones toward bringing the Braintree facility online in the first half of 2026, paving the way for SurgiMend and PriMatrix production to resume.Zacks Rank & Key PicksIntegra currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Insulet PODD.ResMed reported a second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.Cardinal Health, carrying a Zacks Rank #2, posted a second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.Insulet, carrying a Zacks Rank #2, posted a fourth-quarter 2024 adjusted EPS of $1.15, topping the Zacks Consensus Estimate by 9.5%. Revenues of $597.5 million exceeded the Zacks Consensus Estimate by 2.7%.PODD has an estimated long-term earnings growth rate of 20.3% compared with the industry’s 15.5% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 27.5%.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardinal Health, Inc. (CAH): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Integra LifeSciences Holdings Corporation (IART): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks