Wrapping up Q3 earnings, we look at the numbers and key takeaways for the medical devices & supplies - cardiology, neurology, vascular stocks, including Artivion (NYSE:AORT) and its peers.
The medical devices and supplies industry, particularly in the fields of cardiology, neurology, and vascular care, benefits from a business model that balances innovation with relatively predictable revenue streams. These companies focus on developing life-saving devices such as stents, pacemakers, neurostimulation implants, and vascular access tools, which address critical and often chronic conditions. The recurring need for these devices, coupled with growing global demand for advanced treatments, provides stability and opportunities for long-term growth. However, the industry faces hurdles such as high research and development costs, rigorous regulatory approval processes, and reliance on reimbursement from healthcare systems, which can exert downward pressure on pricing.
Looking ahead, the industry is positioned to benefit from tailwinds such as aging populations (which tend to have higher rates of disease) and technological advancements like minimally invasive procedures and connected devices that improve patient monitoring and outcomes. Innovations in robotic-assisted surgery and AI-driven diagnostics are also expected to accelerate adoption and expand treatment capabilities. However, potential headwinds include pricing pressures stemming from value-based care models and continued complexity changing from navigating regulatory frameworks that may prioritize further lowering healthcare costs.
The 4 medical devices & supplies - cardiology, neurology, vascular stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.1%.
Thankfully, share prices of the companies have been resilient as they are up 8.7% on average since the latest earnings results.
Best Q3: Artivion (NYSE:AORT)
Founded in 1992, Artivion (NYSE:AORT) develops and manufactures medical devices and biomaterials for the treatment of cardiovascular diseases, with a focus on aortic valve replacement, vascular surgery, and cardiac surgery.
Artivion reported revenues of $95.78 million, up 9% year on year. This print exceeded analysts’ expectations by 0.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ sales volume estimates.
"We continued our strong financial performance through the third quarter as our team delivered revenue growth consistent with our expectations while executing on several initiatives designed to drive long-term profitable growth with our expanding, clinically differentiated product portfolio. Revenue growth in the third quarter was driven by year-over-year growth in On-X of 15%, BioGlue of 14% and stent grafts of 12%, all compared to the third quarter of 2023. On a constant currency basis, year-over-year On-X, BioGlue, and stent grafts grew 15%, 14% and 13%, respectively. We also saw continued revenue strength across Asia Pacific and Latin America which grew 23% and 21%, respectively, and on a constant currency basis, 23% and 32%, compared to last year," said Pat Mackin, Chairman, President, and Chief Executive Officer.
Artivion delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 5.5% since reporting and currently trades at $30.59.
Is now the time to buy Artivion? Access our full analysis of the earnings results here, it’s free.
Penumbra (NYSE:PEN)
Founded in 2004, Penumbra (NYSE:PEN) designs and manufactures medical devices, focusing on the treatment of neurological and vascular diseases.
Penumbra reported revenues of $301 million, up 11.1% year on year, outperforming analysts’ expectations by 1.3%. The business had a strong quarter with an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ constant currency revenue estimates.
Penumbra delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 28.1% since reporting. It currently trades at $270.61.
Is now the time to buy Penumbra? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: ICU Medical (NASDAQ:ICUI)
Founded in 1984, ICU Medical (NASDAQ:ICUI) provides medical devices and systems for infusion therapy, vascular access, and oncology (cancer) care.
ICU Medical reported revenues of $589.1 million, up 6.5% year on year, exceeding analysts’ expectations by 1%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.
ICU Medical delivered the slowest revenue growth in the group. As expected, the stock is down 13.3% since the results and currently trades at $154.
Read our full analysis of ICU Medical’s results here.
Merit Medical Systems (NASDAQ:MMSI)
Founded in 1987, Merit Medical Systems (NASDAQ:MMSI) designs and manufactures medical devices used in interventional, diagnostic, and therapeutic procedures, with a focus on cardiology, radiology, and endoscopy.
Merit Medical Systems reported revenues of $339.8 million, up 7.8% year on year. This number surpassed analysts’ expectations by 1.4%. Overall, it was a satisfactory quarter as it also put up a decent beat of analysts’ full-year EPS guidance estimates.
Merit Medical Systems pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 14.5% since reporting and currently trades at $108.59.
Read our full, actionable report on Merit Medical Systems here, it’s free.
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