It has been about a month since the last earnings report for Integra LifeSciences (IART) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Integra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Th ...

Company Overview - Integra LifeSciences Holdings Corporation (IART) is currently experiencing significant attention from investors due to high implied volatility in its options market, particularly the Jun 20, 2025 $20.00 Call option [1] - The company is ranked 4 (Sell) by Zacks in the Medical - Instruments Industry, which is in the top 36% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, no analysts have increased their earnings estimates for the current quarter, while five analysts have revised their estimates downward, leading to a decrease in the Zacks Consensus Estimate from 59 cents per share to 43 cents [3] Market Expectations - The high implied volatility suggests that options traders are anticipating a significant price movement for Integra LifeSciences shares, potentially indicating an upcoming event that could lead to a major rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

LOS ANGELES, May 20, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Integra LifeSciences Holdings Corporation ("Integra" or "the Company") (NASDAQ: IART) for violations of the securities laws.The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Integra reported its financial results for Q1 2025 on May ...

Group 1 - Integra LifeSciences Holdings Corporation is under investigation for potential securities fraud and unlawful business practices involving its officers and directors [1] - The company reported a first-quarter 2025 earnings per diluted share of -$0.33, a decline from -$0.04 per diluted share in the previous year [3] - Integra's full-year earnings guidance and second-quarter revenue outlook significantly missed consensus estimates, with reported declines in its Neurosurgery and Tissue Technologies businesses due to inventory issues and slower ordering patterns [3] Group 2 - Following the financial results announcement, Integra's stock price dropped by $3.57 per share, or 21.19%, closing at $13.28 per share on May 5, 2025 [4]

Core Viewpoint - Integra LifeSciences Holdings Corporation is under investigation for potential securities fraud and unlawful business practices following disappointing financial results and significant stock price decline [1][2][3]. Financial Performance - For Q1 2025, Integra reported earnings per diluted share of -$0.33, a decline from -$0.04 per diluted share in the same period last year [2]. - The company provided full-year earnings guidance and a second-quarter revenue outlook that fell significantly short of consensus estimates [2]. - Declines were noted in the Neurosurgery and Tissue Technologies segments, attributed to inventory issues and slower ordering patterns [2]. Stock Market Reaction - Following the announcement of the financial results, Integra's stock price dropped by $3.57 per share, or 21.19%, closing at $13.28 per share on May 5, 2025 [3].

Core Viewpoint - Integra LifeSciences Holdings Corporation reported an earnings miss for Q1 2025, with adjusted EPS of 41 cents, falling short of estimates and showing a significant year-over-year decline of 25.5% [1][2][11] Financial Performance - Total revenues for Q1 2025 increased by 3.7% year over year to $382.7 million, slightly exceeding consensus estimates by 0.1% [3] - Organic revenue declined by 3.5% year over year, indicating challenges in core operations [3][11] - Gross profit decreased by 6% year over year to $194.4 million, with gross margin contracting by 526 basis points to 50.8% due to a 16.2% rise in the cost of goods sold [6] - Selling, general and administrative expenses rose by 9.5% to $181.5 million, while research and development expenses fell by 8.3% to $24.7 million [6] Segment Performance - Revenues in the Codman Specialty Surgical segment rose by 9.4% year over year to $280.7 million, although organic growth was down by 1.1% [4] - Neurosurgery sales within this segment fell by 4.7% organically, attributed to shipping holds [4] - Tissue Technologies revenues totaled $102 million, down 9.3% year over year, with notable declines in Private Label sales due to supply delays [5] Financial Position - At the end of Q1 2025, the company had approximately $239.1 million in cash and cash equivalents, down from $246.4 million at the end of Q4 2024 [8] - Cumulative net cash outflow from operating activities was $11.26 million, contrasting with cash inflows of $15.76 million a year ago [8] Guidance - For 2025, the company reaffirmed its revenue guidance of $1.650-$1.715 billion, indicating growth of 2.4%-6.5% [9] - Adjusted EPS forecast was reduced to a range of $2.19-$2.29 from a previous range of $2.41-$2.51 [9] - For Q2 2025, expected revenues are projected between $390-$400 million, reflecting a decline of 6.8%-4.4% [10] Strategic Insights - Despite the earnings miss, the company reported positive contributions from the Acclarent acquisition and double-digit growth in several product lines [12] - The company is focusing on advancing its Compliance Master Plan, expanding its international portfolio, and enhancing leadership [12]

Product Development and Launches - Integra LifeSciences anticipates PMA approval for SurgiMend in implant-based breast reconstruction by the first half of 2026, following the operationalization of the Braintree facility[192]. - The company launched MicroMatrix® Flex in the U.S. in 2024, enhancing access to challenging wound areas[193]. - Integra successfully re-launched the CereLink® ICP monitor system in 2024, offering advanced monitoring capabilities for traumatic brain injury patients[194]. - The acquisition of Acclarent in April 2024 positions Integra as a leading provider in ENT products and technologies, enhancing its market presence[196]. - The company has introduced several new products in international markets, including MicroMatrix and Certas Plus® in Europe and CUSA Clarity in Australia and Japan[195]. - The CerebroFlo® EVD catheter, acquired from Arkis Biosciences, shows 99% less thrombus accumulation compared to leading competitors[201]. - The Aurora® Surgiscope, acquired from Rebound Therapeutics, received FDA clearance in 2025, enhancing cranial surgery capabilities[202]. - The company anticipates PMA approval for DuraSorb for use in IBBR in 2026, following the completion of clinical trials and regulatory processes[207]. Financial Performance - In 2025, the company reported a net loss of $25.3 million, or $0.33 per diluted share, compared to a net loss of $3.3 million, or $0.04 per diluted share in 2024[216]. - Total revenues for the three months ended March 31, 2025, increased by $13.8 million to $382.7 million from $368.9 million in the same period in 2024[220]. - The Codman Specialty Surgical segment generated revenues of $280.7 million, an increase of $24.2 million, or 9%, compared to the prior-year period, including $29.1 million from the Acclarent acquisition[221]. - The Tissue Technologies segment reported revenues of $102.0 million, a decrease of $10.4 million, or 9%, primarily due to declines in Integra Skin and private label business[222]. - Gross margin for the three months ended March 31, 2025, was $194.4 million, a decrease of $12.4 million from $206.8 million in 2024, with a gross margin percentage of 50.8% compared to 56.1%[223]. - Special charges for the three months ended March 31, 2025, totaled $42.6 million, up from $30.2 million in 2024, driven by acquisition, integration, and quality remediation costs[217]. - Research and development expenses decreased by $2.2 million in the three months ended March 31, 2025, primarily due to lower spending on EU MDR and other projects[225]. - Selling, general and administrative costs increased by $15.7 million in the same period, primarily due to Acclarent commercial costs[226]. - Total revenue for Q1 2025 was $382.65 million, a 3.2% increase from $368.87 million in Q1 2024, driven by a $26 million increase in domestic revenues[238][239]. Operational Changes and Investments - The company is transitioning manufacturing from the Boston facility to the Braintree facility, with ongoing investments in capacity expansion[197]. - The Braintree facility is expected to be operational with FDA approval in the first half of 2026, which will enhance manufacturing capabilities for several product lines[212]. - The company believes its cash, cash equivalents, and available borrowings under the Senior Credit Facility are sufficient to finance operations and capital expenditures for the next twelve months[262]. Tax and Interest Expenses - The effective tax rate for Q1 2025 was 15.8%, significantly lower than 37.3% in Q1 2024, influenced by operating losses and tax benefits[233]. - Interest income decreased by $0.6 million to $4.42 million in Q1 2025 compared to Q1 2024[229]. - Interest expense increased by $5.2 million to $18.82 million in Q1 2025, attributed to the expiration of interest rate swap derivatives[231]. - The company anticipates a $2.7 million expense related to the new 15% global minimum tax regime for 2025[236]. Cash Flow and Working Capital - Working capital increased to $188.8 million as of March 31, 2025, up from $159.6 million at the end of 2024[241]. - Cash and cash equivalents totaled approximately $239.1 million as of March 31, 2025, down from $246.4 million at the end of 2024[242]. - Net cash used in operating activities was $(11.26) million in Q1 2025, a decrease of $27 million compared to Q1 2024[245]. Debt and Financial Obligations - The Senior Credit Facility's Consolidated Total Leverage Ratio was 4.30 as of March 31, 2025, below the covenant requirement of 5.00[256]. - The company has principal and interest obligations related to its Senior Credit Facility, Securitization Facility, and 2025 Notes, along with future minimum lease payments for manufacturing facilities[265]. - A hypothetical 100 basis points increase in interest rates would impact interest income on cash and cash equivalents by approximately $2.3 million annually[275]. - A 100 basis points change in interest rates would impact interest expense on the unhedged portion of the debt by $8.1 million on an annualized basis[277]. Currency and Derivative Management - The company is exposed to foreign currency exchange rate risks, primarily with transactions in Euros, British pounds, and other currencies[271]. - The company manages foreign currency exposure through derivative financial instruments, including foreign currency exchange forward contracts[272]. - The company has contingent consideration obligations related to prior and current year acquisitions, which are not fixed[266]. Dividend Policy - The company has not paid any cash dividends on its common stock since its formation, and future dividend payments will depend on financial conditions and Board discretion[261].

Integra LifeSciences (IART) Q1 2025 Earnings Call May 05, 2025 08:30 AM ET Company Participants Christopher Ward - Senior Director of Investor RelationsMojdeh Poul - President & Chief Executive OfficerLea Knight - Executive VP & CFOYoung Li - Senior VP - Equity ResearchJayson Bedford - Managing Director - Medical Technology Conference Call Participants None - AnalystVik Chopra - AnalystLilia-Celine Lozada - AnalystRavi Misra - Associate Analyst - Medtech Equity ResearchCraig Bijou - Equity Research Analyst ...

Core Insights - Integra LifeSciences reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.43 per share, and down from $0.55 per share a year ago, representing an earnings surprise of -4.65% [1] - The company posted revenues of $382.65 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.13% and up from $368.87 million year-over-year [2] - Integra shares have declined approximately 25.7% since the beginning of the year, compared to a decline of -3.3% for the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $417.75 million, and for the current fiscal year, it is $2.46 on revenues of $1.68 billion [7] - The estimate revisions trend for Integra is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Instruments industry, to which Integra belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Neuronetics, is expected to report a quarterly loss of $0.13 per share, reflecting a year-over-year change of +51.9%, with revenues anticipated to be $29.24 million, up 67.8% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $383 million, reflecting a reported growth of 3.7% and an organic decline of 3.5% compared to the previous year [7][23] - Adjusted EPS for the quarter was $0.41, down 25% compared to 2024 [23] - Gross margins were 52.2%, down 220 basis points from 2024, impacted by manufacturing variances and increased network optimization spending [24] - Adjusted EBITDA margins were 16.6%, down 290 basis points compared to 2024 [24] - Operating cash flow for Q1 was negative $11.3 million [24] Business Line Data and Key Metrics Changes - Codman Specialty Surgical (CSS) segment reported revenues of $281 million, with a reported growth of 9.4% and an organic decline of 1.1% [25] - Tissue Technologies revenues were $102 million, down approximately 9% on both a reported and organic basis [28] - The ENT business saw approximately $29 million in revenue from the Aclaren acquisition, with organic growth being flat due to supply constraints [25] Market Data and Key Metrics Changes - Global neurosurgery revenues declined 4.7% organically, primarily due to ship holds affecting several product lines [25] - International performance within CSS declined by high single digits, attributed to the timing and duration of ship holds [27] - Sales in wound reconstruction were down due to Integra Skin and ship holds on other products [28] Company Strategy and Development Direction - The company is focused on a turnaround strategy, emphasizing portfolio prioritization and disciplined program management to enhance operational execution [9][10] - A compliance master plan is in place to address quality system regulations and FDA observations, with significant progress reported in site assessments [12][14] - Investments are being made in manufacturing infrastructure to support long-term sustainable growth [8][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the specialized product portfolio despite current challenges [8] - The anticipated revenue headwinds from ship holds are within the assumptions made when setting guidance [20] - The company expects a revenue range of $390 million to $400 million for Q2 2025, reflecting a decline due to ship holds [19][35] Other Important Information - The company identified additional ship holds for certain products, now expecting total ship holds for the year to be between $55 million and $70 million [13][36] - The impact of recently announced global tariffs has been incorporated into the updated 2025 guidance, estimated at approximately $22 million [20][33] Q&A Session Summary Question: Guidance for Q2 and confidence in the second half of the year - Management acknowledged the impact of newly identified ship holds on Q2 guidance but noted that the guidance reflects improved production and normal seasonality [44][45] Question: Tariff impact and mitigation efforts - Management confirmed that several mitigation strategies are being pursued, including tariff exemptions and sourcing optimization, but did not include their impacts in the current guidance [47][49] Question: Demand for private label products - Management anticipates a step-up in private label demand in the second half of the year, although the forecast has been adjusted to reflect a low single-digit decline for the full year [53] Question: Remediation efforts and FDA compliance - Management is on track to complete assessments and remediation plans by year-end, with ongoing dialogue with the FDA regarding compliance [78][80] Question: Impact of ship holds on revenue guidance - Management indicated that the updated guidance allows for additional supply disruptions while still achieving the high end of the revenue range [71]