As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at surgical equipment & consumables – specialty stocks, starting with Teleflex (NYSE:TFX).
The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability. Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly.
The 4 surgical equipment & consumables – specialty stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 8% on average since the latest earnings results.
With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE:TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.
Teleflex reported revenues of $780.9 million, up 2.3% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.
“We are pleased with our solid second quarter results, which reflected an increase in constant currency revenue growth and adjusted earnings per share compared to the prior year period,” said Liam Kelly, Teleflex’s Chairman, President and Chief Executive Officer.
Teleflex Total Revenue
Teleflex delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 10.4% since reporting and currently trades at $125.80.
Is now the time to buy Teleflex? Access our full analysis of the earnings results here, it’s free.
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
LeMaitre reported revenues of $64.23 million, up 15% year on year, outperforming analysts’ expectations by 2.6%. The business had a very strong quarter with an impressive beat of analysts’ full-year EPS guidance and organic revenue estimates.
LeMaitre Total Revenue
LeMaitre scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 9.4% since reporting. It currently trades at $94.
Is now the time to buy LeMaitre? Access our full analysis of the earnings results here, it’s free.
Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ:IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.
Integra LifeSciences reported revenues of $415.6 million, flat year on year, exceeding analysts’ expectations by 5.2%. It was a satisfactory quarter as it also posted a solid beat of analysts’ organic revenue estimates.
Integra LifeSciences delivered the biggest analyst estimates beat but had the slowest revenue growth and weakest full-year guidance update in the group. Interestingly, the stock is up 26.8% since the results and currently trades at $15.68.
Read our full analysis of Integra LifeSciences’s results here.
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ:ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Intuitive Surgical reported revenues of $2.44 billion, up 21.4% year on year. This print topped analysts’ expectations by 3.7%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates.
Intuitive Surgical scored the fastest revenue growth among its peers. The stock is down 14.7% since reporting and currently trades at $436.36.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn’t slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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