Integra LifeSciences Holdings Whiffs on Earnings

Seth Jayson, The Motley Fool
Updated

Integra LifeSciences Holdings (NAS: IART) reported earnings on Feb. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Integra LifeSciences Holdings met expectations on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.

Margins dropped across the board.

Revenue details
Integra LifeSciences Holdings logged revenue of $203.5 million. The 11 analysts polled by S&P Capital IQ foresaw a top line of $203.1 million on the same basis. GAAP reported sales were 4.8% higher than the prior-year quarter's $194.1 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.48. The nine earnings estimates compiled by S&P Capital IQ forecast $0.55 per share on the same basis. GAAP EPS of $0.16 for Q4 were 75% lower than the prior-year quarter's $0.63 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 59.3%, 580 basis points worse than the prior-year quarter. Operating margin was 3.8%, 1,540 basis points worse than the prior-year quarter. Net margin was 2.2%, 750 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $195.5 million. On the bottom line, the average EPS estimate is $0.58.

Next year's average estimate for revenue is $837.5 million. The average EPS estimate is $2.66.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 155 members out of 167 rating the stock outperform, and 12 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Integra LifeSciences Holdings a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Integra LifeSciences Holdings is outperform, with an average price target of $42.69.

The health-care investing landscape is littered with also-rans and a few major winners. Is Integra LifeSciences Holdings performing well enough for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company Fool co-founder David Gardner believes will deliver amazing returns during the next few years. Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement