Q2 revenue and earnings beats didn’t make up for the company’s full-year guidance cut.
Shares of Integra Lifesciences (IART -16.93%) were sinking 15.5% as of 11 a.m. ET on Monday. The decline came after the medical technology company announced its second-quarter results before the market opened.
Integra reported Q2 revenue of $418.2 million, up 9.7% year over year. This topped the average analyst revenue estimate of nearly $413.2 million.
The company posted a loss per share of $0.16, based on generally accepted accounting principles (GAAP). Integra announced adjusted earnings per share (EPS) of $0.63. Although this reflected a decline from adjusted EPS of $0.71 in the prior-year period, it narrowly beat the consensus estimate of $0.62.
Integra’s Q2 numbers weren’t the reason for the sell-off, though, as the company’s updated full-year guidance disappointed investors. It now projects that full-year revenue will be between $1.609 billion and $1.629 billion, with adjusted EPS of $2.41 to $2.57. Both ranges are well below Wall Street’s consensus full-year estimates.
Why did Integra Lifesciences lower its guidance?
In May, Integra’s full-year outlook was for revenue between $1.672 billion and $1.687 billion, with adjusted EPS of $3.01 to $3.11. Why did the company lower its guidance in its Q2 update? CEO Jan De Witte said that the reduction “reflects an updated view of our operational challenges and critical investments in our compliance improvement program that will allow our supply to meet our strong commercial demand strength over time.”
Is Integra Lifesciences stock a buy?
Integra Lifesciences could bounce back. However, I don’t think the stock is a buy right now. Other stocks provide much more attractive risk-reward propositions.
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.