PRINCETON, N.J. - Integra LifeSciences Holdings Corporation (NASDAQ:IART), a leading global medical technology company, reported a modest beat in its second-quarter earnings, surpassing analyst expectations. The company posted an adjusted EPS of $0.63, slightly above the consensus estimate of $0.62. Revenue for the quarter was $418.2 million, also exceeding the consensus estimate of $413.11 million.
The second quarter's revenue represented a 9.7% increase on a reported basis and a 2.3% increase on an organic basis compared to the same period last year. However, when excluding the impact from Boston, the organic growth was a more modest 0.3%. Despite the growth, adjusted earnings per share for the quarter were down from the prior year's $0.71, reflecting operational challenges and investments in compliance improvements.
Jan De Witte, Integra LifeSciences' president and CEO, highlighted the persistent market demand for the company's diversified portfolio and the dedication of its teams. He also noted that the reduction in the full-year guidance reflects an updated view of operational challenges and critical investments in the company's compliance improvement program.
Looking ahead, Integra LifeSciences has updated its full-year 2024 revenue guidance to a range of $1.609 billion to $1.629 billion, with adjusted EPS guidance ranging from $2.41 to $2.57. These projections fall short of the consensus estimates, which anticipated an adjusted EPS of $3.04 and revenue of $1.676 million.
For the third quarter of 2024, the company expects reported revenues to be between $372 million and $382 million, indicating a potential decline of up to 2.6% and an organic growth rate between -9.4% to -6.7%. Adjusted EPS is forecasted to be in the range of $0.36 to $0.44 for the third quarter.
The company's balance sheet remains robust, with cash flow from operations at $40.4 million in the quarter and total liquidity of approximately $1.18 billion. However, the company is implementing a compliance master plan to address quality system and GMP compliance learnings, which has led to temporary shipping holds on certain products primarily impacting the third quarter.
The company is also focusing on the relaunch of SurgiMend® and PriMatrix® at a new state-of-the-art manufacturing facility in Braintree, Massachusetts, with operational readiness expected in the first half of 2026. Additionally, Integra received a PMA approvable notification pending GMP certification for SurgiMend.
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