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Integra (IART) to Report Q1 Earnings: What's in the Offing?

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Integra LifeSciences Holding Corporation (IART - Free Report) is scheduled to report first-quarter 2021 results on Apr 28, before the opening bell.

In the last reported quarter, the company’s earnings of $2.45 surpassed the Zacks Consensus Estimate by 3.8%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed on one, with the average surprise being 86.6%.

Let’s see how things have shaped up prior to this announcement.

Factors to Note

Just like the last reported quarter, operations in both the business segments might have remained challenging for Integra through the first quarter.

CSS

Integra’s Codman Specialty Surgical (CSS) segment’s results are expected to reflect potential growth in first-quarter 2021 on continued robust demand for market-leading products including DuraGen, antimicrobial catheters and service programmable valves. In the fourth quarter, robust sales of these products compensated the company’s pandemic-induced operating loss. With the health situation remaining more-or-less unchanged, this trend is expected to have been repeated in the to-be-reported quarter.  

Furthermore, Integra registered revenue growth in Japan banking on strong customer adoption of the neurosurgery portfolio. This is expected to have once again contributed to the company’s top line. In China too, the distribution deal with local Chinese partner has been gaining larger market access. This is expected to have contributed to the CSS growth rate.

Integra LifeSciences Holdings Corporation Price and EPS Surprise

We expect the addition of ACell and expansion of the tissue technology platform to have driven first-quarter 2021 growth.

OTT

In January 2021, the company divested the non-core extremity orthopedic business within the Orthopedics and Tissue Technologies arm to focus more on the profitable part of the arm. During fourth-quarter earnings call, it noted that this discontinued business will have a negative impact on 2021 growth. We believe, this should reflect on first-quarter 2021 results as well.

However, as the pandemic took a graver form, demand for the Integra’s surgical procedures declined significantly, resulting in dramatic sales decline. During the company’s February update, the company noted that the recovery rate of surgical procedures and capital equipment sales should remain variable as the course of the pandemic remains uncertain. The slower recovery rate is likely to have impeded Integra’s first-quarter growth.

Estimate Picture

For first-quarter 2021, the Zacks Consensus Estimate for total revenues of $349.9 million implies a decline of 1.3% from the prior-year reported figure.

The consensus estimate for earnings per share is pegged at 56 cents, implying an improvement of 16.7% from the prior-year reported figure.

What Our Model Suggests

Our proven model does not conclusively predict an earnings beat for Integra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Integra has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

Elanco Animal Health Incorporated (ELAN - Free Report) currently has a Zacks Rank #1 and an Earnings ESP of +1.90%. You can see the complete list of today’s Zacks #1 Rank stocks here.

HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +8.91% and a Zacks Rank of 2, at present.

Avenue Therapeutics, Inc. (ATXI - Free Report) has an Earnings ESP of +16.67% and a Zacks Rank of 2, at present.

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