Looking back on medical devices & supplies - specialty stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Bausch + Lomb (NYSE: BLCO) and its peers.
The medical devices industry operates a business model that balances steady demand with significant investments in innovation and regulatory compliance. The industry benefits from recurring revenue streams tied to consumables, maintenance services, and incremental upgrades to the latest technologies, although specialty devices are more niche. The capital-intensive nature of product development, coupled with lengthy regulatory pathways and the need for clinical validation, can weigh on profitability and timelines. In addition, there are constant pricing pressures from healthcare systems and insurers maximizing cost efficiency. Over the next several years, one tailwind is demographic–aging populations means rising chronic disease rates that drive greater demand for medical interventions and monitoring solutions. Advances in digital health, such as remote patient monitoring and smart devices, are also expected to unlock new demand by shortening upgrade cycles. On the other hand, the industry faces headwinds from pricing and reimbursement pressures as healthcare providers increasingly adopt value-based care models. Additionally, the integration of cybersecurity for connected devices adds further risk and complexity for device manufacturers.
The 6 medical devices & supplies - specialty stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.8%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22.5% since the latest earnings results.
Bausch + Lomb (NYSE: BLCO)
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE: BLCO) develops and manufactures a comprehensive range of eye health products including contact lenses, pharmaceuticals, surgical devices, and consumer eye care solutions.
Bausch + Lomb reported revenues of $1.28 billion, up 9.1% year on year. This print exceeded analysts’ expectations by 1.8%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
“Underpinning our recent success is a commitment to long-term, profitable growth,” said Brent Saunders, chairman and CEO, Bausch + Lomb.
Bausch + Lomb delivered the weakest full-year guidance update of the whole group. The stock is down 22.3% since reporting and currently trades at $12.70.
Is now the time to buy Bausch + Lomb? Access our full analysis of the earnings results here, it’s free.
Best Q4: Inspire Medical Systems (NYSE: INSP)
Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.
Inspire Medical Systems reported revenues of $239.7 million, up 24.5% year on year, outperforming analysts’ expectations by 0.9%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Inspire Medical Systems scored the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 30.7% since reporting. It currently trades at $125.35.
Is now the time to buy Inspire Medical Systems? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Haemonetics (NYSE: HAE)
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Haemonetics reported revenues of $348.5 million, up 3.7% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted organic revenue in line with analysts’ estimates.
Haemonetics delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 17% since the results and currently trades at $59.11.
Read our full analysis of Haemonetics’s results here.
Integer Holdings (NYSE: ITGR)
With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.
Integer Holdings reported revenues of $449.5 million, up 11.1% year on year. This print surpassed analysts’ expectations by 0.6%. More broadly, it was a mixed quarter as it also logged full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ EPS estimates.
Integer Holdings delivered the highest full-year guidance raise among its peers. The stock is down 23.4% since reporting and currently trades at $109.84.
Read our full, actionable report on Integer Holdings here, it’s free.
Enovis (NYSE: ENOV)
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE: ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Enovis reported revenues of $561 million, up 23.3% year on year. This number beat analysts’ expectations by 1%. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
The stock is down 26.3% since reporting and currently trades at $31.06.
Read our full, actionable report on Enovis here, it’s free.
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