NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- INTEGRA LIFESCIENCES HLDGS's earnings per share declined by 39.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, INTEGRA LIFESCIENCES HLDGS reported lower earnings of $0.95 versus $2.18 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $0.95).
- The gross profit margin for INTEGRA LIFESCIENCES HLDGS is rather high; currently it is at 61.40%. Regardless of IART's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IART's net profit margin of 3.40% is significantly lower than the same period one year prior.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.57%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 39.47% compared to the year-earlier quarter. Despite the heavy decline in its share price over the last year, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry. We feel, however, that other strengths this company displays compensate for this.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 41.7% when compared to the same quarter one year ago, falling from $11.49 million to $6.69 million.
Integra LifeSciences Holdings Corporation develops, manufactures, and markets surgical implants and medical instruments for neurosurgery, extremity reconstruction, orthopedics, and general surgery. The company has a P/E ratio of 34.9, equal to the average health services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Integra LifeSciences has a market cap of $890.7 million and is part of the
industry. Shares are up 7.5% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet RatingsStaff