Integra LifeSciences reported adjusted EPS of $0.76 in the third
quarter of 2014, up a significant 15.2%. Adjusted EPS also
surpassed the Zacks Consensus Estimate by 2.7%. Total revenue
increased 7.7% year over year but missed the Zacks Consensus
Estimate by 1.4%. The year-over-year growth was based on solid
global neurosurgery business and global skin and wound franchise.
Besides the decision to spin off the company's loss making Spine
and Orthobiologics business is expected to prove as an upside for
the company going forward. However, an unfavorable foreign currency
translation owing to the weakening of the euro versus the dollar
posed concern. In addition, the bearish 2014 earnings outlook also
fails to indicate any near-term catalyst that may improve the
economic scenario in the near future. Accordingly, we reiterate
Integra LifeSciences at Neutral.
Integra LifeSciences is one of the world leaders in regenerative
medicine. The company develops, manufactures and markets
cost-effective surgical implants and medical instruments. The
products are used primarily in neurosurgery, extremity
reconstruction, orthopedics, and general surgery to treat millions
of patients every year. Integra LifeSciences is headquartered in
Plainsboro, NJ and has research and manufacturing facilities
throughout the world.
Currently the company manufactures and sells products in the
following five reportable business segments: U.S. Neurosurgery,
U.S. Extremities, U.S. Instruments, U.S. Spine and Other and
The U.S. Neurosurgery segment sells a full line of products
specifically for neurosurgery and neuro critical care, specifically
used in the neurosurgery operating room and neurosurgery intensive
care unit (NICU). Key products in this segment include dural repair
products (both dural closure and dural sealants), tissue ablation
equipment, intracranial monitoring equipment, cranial stabilization
equipment, and cerebral spinal fluid ("CSF") management devices.
Integra LifeSciences sells products through directly employed sales
The U.S. Extremities segment includes the U.S. extremity
reconstruction business, which includes repair of soft tissue and
the orthopedic reconstruction of bones in the foot, ankle and leg
below the knee (Lower Extremity), and the hand, wrist, elbow and
shoulder (Upper Extremity). Key products include bone and joint
fixation devices, implants and instruments for osteoarthritis,
rheumatoid arthritis, wrist and shoulder arthroplasty, carpal
tunnel syndrome and cubital tunnel syndrome. Other key products
include regenerative medicine devices for the treatment of acute
and chronic wounds, peripheral nerve repair and protection and
tendon repair, and bone graft substitutes. These products are sold
through a large direct sales organization and through specialty
distributors focused on their respective surgical disciplines.
This business segment at Integra is currently one of the largest
surgical instrument suppliers in the U.S. that sells more than
60,000 instrument patterns and surgical products and lighting to
hospitals, surgery centers, and dental, podiatry, and veterinary
offices. The company also sells sell surgical headlight systems and
table-mounted retractors under this segment.
U.S. Spine and Others
This segment includes:
The U.S. Spine business, which focuses on spinal fusion, spinal
implants, and deformity correction
The U.S. Orthobiologics business, which focuses on bone graft
substitutes and other related medical devices that are used to
enhance the repair and regeneration of bone in various types of
orthopedic surgical procedures
The Private Label business, which sells the company's
regenerative medicine and other products to strategic partners.
This segment sells products of the other four segments in the
Europe, the Middle East and Africa
Central/South America, Asia-Pacific and Canada
Integra LifeSciences (IART): Read the Full Research
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
INTEGRA LIFESCI (IART): Free Stock Analysis
To read this article on Zacks.com click here.