What Happened?
Shares of medical device company Integra LifeSciences (NASDAQ: IART) fell 23% in the morning session after it reported third-quarter sales that missed expectations and provided a weak financial outlook. The company's revenue of $402.1 million fell short of Wall Street's projections. While its adjusted earnings per share of $0.54 surpassed estimates, this was overshadowed by disappointing forward-looking guidance. Integra's revenue forecast for the fourth quarter came in at $430 million, well below what analysts had anticipated. Adding to investor concerns, the company also lowered its adjusted earnings per share guidance for the full year.
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What Is The Market Telling Us
Integra LifeSciences’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. But moves this big are rare even for Integra LifeSciences and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 15 days ago when the stock dropped on the news that Truist raised its price target on the stock to $15 from $13, ahead of the company's third-quarter results. The firm kept a Hold rating on the shares. The analyst mentioned in a research note that they expected “healthy” Q3 revenue and earnings across the medical technology sector but also braced for “stock volatility.” The note also stated that new money felt notably absent from the space and that there could be excessive reactions to anything counter to crowded positioning. This news came as Integra LifeSciences had previously announced it would release its third-quarter financial results on October 30.
Integra LifeSciences is down 49.1% since the beginning of the year, and at $11.71 per share, it is trading 56.1% below its 52-week high of $26.70 from November 2024. Investors who bought $1,000 worth of Integra LifeSciences’s shares 5 years ago would now be looking at an investment worth $265.61.
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