Business Corpus: This Highly Rated Medtech Just Sacrificed A Buy Point On Mixed EarningsIntegra Lifesciences reported adjusted earnings of 59 cents per share on sales of $365.9 million for its third quarter. A year ago, it reported profit of 45 cents on $278.8 million in sales. The post This Highly Rated Medtech Just Sacrificed A Buy Point On Mixed Earnings appeared first on Investor's Business Daily.

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Integra LifeSciences (IART) sacrificed a potential buy point Wednesday after the medtech company lagged third-quarter sales expectations and cut its 2018 guidance.

On the stock market today, Integra stock collapsed 14% to close at 53.57. Shares of the medical-technology company had been consolidating with a buy point at 67.60. Medtech stocks rose a fraction. Integra stock is highly rated by Investor's Business Daily with a best-possible Composite Rating of 99.

RBC Capital Markets analyst Glenn Novarro noted the overall quarter was mixed. Integra's sales lagged, but adjusted profit met forecasts. Meanwhile, the medtech player "lowered its 2018 organic revenue guide, however, reiterated its 2019 organic revenue guidance of 5%-7%," he said.

Integrating J&J Neurosurgery Unit

For the third quarter, Integra reported $365.9 million in sales, rising 6.2% organically. But that missed the average of analysts polled by Zacks Investment Research for $371 million. Integra previously guided to $367 million to $372 million in sales, Novarro said in a report to clients.

Including the impact of acquisitions, divestitures and exchange rates, Integra's sales rose 31.2%. Integra noted its acquisition of Johnson & Johnson's (JNJ) neurosurgery business, known as Codman, contributed $78.9 million.

"Despite some revenue softness in the second half of the year, we continue to make solid progress with the Codman integration and the channel expansion efforts, particularly in regenerative technologies," Chief Executive Peter Arduini said in a written statement.

Adjusted profit of 59 cents per share met views and grew 31.1%. Earnings were in line with prior guidance for 58-62 cents, RBC's Novarro said.

Guidance For Medtech Lags Expectations

For the year, Integra cut its revenue guidance to $1.467 billion to $1.472 billion, down from its earlier outlook for $1.475 billion to $1.49 billion. The firm expects 4% organic growth. The medtech firm's new outlook lagged analyst views for $1.487 billion.

"Guidance range reflects lower forecasts revenue from extremities orthopedics, Codman revenue in select countries outside the U.S. where commercial operations have not yet transferred to Integra and a lower foreign currency benefit," Integra said in a news release.

The medtech outlet reiterated its guidance for adjusted earnings of $2.36-$2.42 per share. That was below the consensus view for $2.44.

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The post This Highly Rated Medtech Just Sacrificed A Buy Point On Mixed Earnings appeared first on Investor's Business Daily.