Tuesday, November 4, 2014

Integra LifeSciences 2014Q3 Earnings

IART released their 2014Q3 earnings yesterday, November 3, following the closing bell.

IART reported $229.7MM in revenue, representing a 7.7% or $16.5MM YOY increase, although missing analyst estimates by about $2MM.  The main revenue driver, as we expected, was the US Neurosurgery and US Extremities segments, which consists of the DuraSeal product line, Bilayer Wound Matrix, and a number of other surgical tools.  Net income was positive this quarter with $9.8MM, or $0.30 per share, compared to IART’s net loss of $30.3MM a year prior. 

IART invested a notable $8.8MM in capital expenditure this quarter and CEO and President, Peter Arduini, announced a new portfolio realignment strategy to promote IART’s long term growth.  This is a plan to spin off its Spine business to its own publicly traded company, specifically focused on the marketing, selling, and development of its spine business. 
After specific charges due to the spin-off, IART lowered their FY2014 GAAP earnings expectations from $1.06 to $0.81 (bullish), but plans to maintain their diluted earnings estimates of about $2.88.

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