Plainsboro, N.J.-based Integra posted profits of $10.8 million, or 14¢ per share, on sales of $282.2 million for the three months ended June 30, for a bottom-line slide of -15.1% on sales growth of 13.2% compared with Q2 2016. Adjusted to exclude one-time items, earnings per share were 45$, dead even with the consensus on Wall Street, where analysts were looking for sales of $283.7 million.
“Profitability and cash flows were strong in the second quarter, while revenues came in at the low end of our guidance range,” president & CEO Peter Arduini said in prepared remarks. “While dural repair underperformed, new product introductions and acquisitions performed well, giving us confidence that revenue growth will accelerate in the second half of this year. We also made significant progress on the planned acquisition of Codman Neurosurgery, and look forward to closing the transaction in the fourth quarter.”
Integra raised the low end of its sales forecast for the year, saying it now expects to report revenues of $1.13 billion to $1.14 billion, up from $1.12 billion to $1.14 billion previously, “reflecting changes in foreign currency expectations and over-performance in Derma Sciences.” The company stood pat on its forecast for adjusted EPS at $1.88 to $1.94. But the organic sales growth rate is now pegged at 6.0% to 7.0%, down from prior guidance for 7.0% to 8.5%, reflecting “slower growth in dural repair.”
“Despite the temporary slowdown in specialty surgical organic growth, we were pleased with the strong profitability generated in the quarter, which led to adjusted net income growth of 17.0% versus the prior year’s quarter and a double-digit increase in adjusted earnings per share,” added CFO Glenn Coleman. “New product introductions including several regenerative products, the Cadence total ankle system and the CUSA Clarity are expected to drive organic growth acceleration in the second half of the year.”
The news sent IART shares down -9.9% to $50.12 apiece today in mid-morning trading.