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Here's Why You Should Hold IART Stock in Your Portfolio Now
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Integra LifeSciences Holdings Corporation (IART - Free Report) is well-poised to grow in the coming quarter, driven by healthy sales growth within its Tissue Technologies business despite product recall and manufacturing pause in Boston. The strong performance of the company’s Codman Specialty Surgical (CSS) arm is encouraging. Meanwhile, headwinds such as a dull macro environment and currency fluctuations pose concerns for Integra’s operations.
In the past year, this Zacks Rank #3 (Hold) stock has lost 55.1% against the industry’s 14.2% growth and the S&P 500 composite’s 33.9% increase.
The renowned medical device company has a market capitalization of $1.32 billion. In the last quarter, the company delivered an earnings surprise of 1.61%.
Let’s delve deeper.
Integra’s Key Upsides
Strong Sales Growth Within Tissue Technologies:Integra's Tissue Technologies business is consistently gaining traction on efficient growth strategies and a better price management policy. As a major development within this business, in July 2024, the company announced its plans to restart the production of PriMatrix and SurgiMend at the new state-of-the-art manufacturing facility in Braintree, MA. The ACell franchise is driving better results, too. In the Tissue Technologies division, the company launched NeuraGen 3D, a unique mid-cap nerve repair product.
During the second quarter of 2024, despite the product recall and subsequent manufacturing pause in Boston, the Tissue Technologies business showed strength, banking particularly on a broad portfolio of wound reconstruction products, with DuraSorb as the key product. Further, the MicroMatrix family of products and Cytal, Gentrix and amniotic registered strong growth in the second quarter.
Consistent Strong Prospects in CSS: Integra sees healthy demand for its industry-leading products within CSS. The segment benefits from growing market acceptance of the company’s global neurosurgery line-ups, including CSS management and neuromonitoring. Within CSS management, Integra is experiencing growth due to strong market adoption of programmable valves and advanced energy.
In the second quarter of 2024. Integra’s CSS arm was up 11.3% on a reported basis from the prior-year quarter. The company delivered high-single-digit growth in dural access and repair, driven by DuraGen and Mayfield. Further, there was a low-single-digit growth in advanced energy driven by Aurora. Integra also registered strong growth from the CereLink relaunch in the neuro-monitoring franchise.
Integra’s Key Downsides
Unfavorable Macro Environment: The challenging macroeconomic scenario, specifically in the Asia Pacific and Europe, is driving the higher-than-anticipated rise in raw materials and labor costs. This macroeconomic scenario is also likely to result in broader economic impacts and security concerns, affecting the company’s business. In the second quarter , selling, general and administrative expenses increased 18.5% year over year.
Image Source: Zacks Investment Research
Foreign Exchange Woes: Integra generates significant revenues outside the United States, a portion of which are U.S. dollar-denominated transactions conducted with customers who generate revenues in currencies other than the U.S. dollar. As a result, currency fluctuations between the U.S. dollar and the currencies in which those customers do business are likely to impact the demand for the company's products in foreign countries.
In the second quarter, CSS’ revenues were adversely impacted by a $3 million unfavorable foreign currency impact.
Estimate Trend
The Zacks Consensus Estimate for 2024 earnings per share has remained unchanged at $2.45 in the past 30 days.
The consensus estimate for the company’s 2024 revenues is pegged at $1.61 billion. The estimate indicates a 4.6% rise from the year-ago number.
TransMedix Group’s earnings are expected to surge 255.8% in 2024. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 287.5%. Shares of the company have risen 181.8% in the past year compared with the industry’s 22.9% growth. TMDX sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AxoGen, carrying a Zacks Rank #2 (Buy) at present, has an earning yield of 94.1% compared with the industry’s 12.3%. Shares of the company have risen 182.6% compared with the industry’s 22.9% growth over the past year. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.46%.
Phibro, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 21% for fiscal 2025 compared with the industry’s 12.6%. In the past year, shares of PAHC have risen 63.7% compared with the industry’s 25.4% growth. PAHC delivered a trailing four-quarter average earnings surprise of 4.10%.
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Here's Why You Should Hold IART Stock in Your Portfolio Now
Integra LifeSciences Holdings Corporation (IART - Free Report) is well-poised to grow in the coming quarter, driven by healthy sales growth within its Tissue Technologies business despite product recall and manufacturing pause in Boston. The strong performance of the company’s Codman Specialty Surgical (CSS) arm is encouraging. Meanwhile, headwinds such as a dull macro environment and currency fluctuations pose concerns for Integra’s operations.
In the past year, this Zacks Rank #3 (Hold) stock has lost 55.1% against the industry’s 14.2% growth and the S&P 500 composite’s 33.9% increase.
The renowned medical device company has a market capitalization of $1.32 billion. In the last quarter, the company delivered an earnings surprise of 1.61%.
Let’s delve deeper.
Integra’s Key Upsides
Strong Sales Growth Within Tissue Technologies:Integra's Tissue Technologies business is consistently gaining traction on efficient growth strategies and a better price management policy. As a major development within this business, in July 2024, the company announced its plans to restart the production of PriMatrix and SurgiMend at the new state-of-the-art manufacturing facility in Braintree, MA. The ACell franchise is driving better results, too. In the Tissue Technologies division, the company launched NeuraGen 3D, a unique mid-cap nerve repair product.
During the second quarter of 2024, despite the product recall and subsequent manufacturing pause in Boston, the Tissue Technologies business showed strength, banking particularly on a broad portfolio of wound reconstruction products, with DuraSorb as the key product. Further, the MicroMatrix family of products and Cytal, Gentrix and amniotic registered strong growth in the second quarter.
Consistent Strong Prospects in CSS: Integra sees healthy demand for its industry-leading products within CSS. The segment benefits from growing market acceptance of the company’s global neurosurgery line-ups, including CSS management and neuromonitoring. Within CSS management, Integra is experiencing growth due to strong market adoption of programmable valves and advanced energy.
In the second quarter of 2024. Integra’s CSS arm was up 11.3% on a reported basis from the prior-year quarter. The company delivered high-single-digit growth in dural access and repair, driven by DuraGen and Mayfield. Further, there was a low-single-digit growth in advanced energy driven by Aurora. Integra also registered strong growth from the CereLink relaunch in the neuro-monitoring franchise.
Integra’s Key Downsides
Unfavorable Macro Environment: The challenging macroeconomic scenario, specifically in the Asia Pacific and Europe, is driving the higher-than-anticipated rise in raw materials and labor costs. This macroeconomic scenario is also likely to result in broader economic impacts and security concerns, affecting the company’s business. In the second quarter , selling, general and administrative expenses increased 18.5% year over year.
Image Source: Zacks Investment Research
Foreign Exchange Woes: Integra generates significant revenues outside the United States, a portion of which are U.S. dollar-denominated transactions conducted with customers who generate revenues in currencies other than the U.S. dollar. As a result, currency fluctuations between the U.S. dollar and the currencies in which those customers do business are likely to impact the demand for the company's products in foreign countries.
In the second quarter, CSS’ revenues were adversely impacted by a $3 million unfavorable foreign currency impact.
Estimate Trend
The Zacks Consensus Estimate for 2024 earnings per share has remained unchanged at $2.45 in the past 30 days.
The consensus estimate for the company’s 2024 revenues is pegged at $1.61 billion. The estimate indicates a 4.6% rise from the year-ago number.
Key Picks
Some better-ranked stocks in the broader medical space are TransMedix Group (TMDX - Free Report) , AxoGen (AXGN - Free Report) and Phibro Animal Health (PAHC - Free Report) .
TransMedix Group’s earnings are expected to surge 255.8% in 2024. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 287.5%. Shares of the company have risen 181.8% in the past year compared with the industry’s 22.9% growth. TMDX sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AxoGen, carrying a Zacks Rank #2 (Buy) at present, has an earning yield of 94.1% compared with the industry’s 12.3%. Shares of the company have risen 182.6% compared with the industry’s 22.9% growth over the past year. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.46%.
Phibro, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 21% for fiscal 2025 compared with the industry’s 12.6%. In the past year, shares of PAHC have risen 63.7% compared with the industry’s 25.4% growth. PAHC delivered a trailing four-quarter average earnings surprise of 4.10%.