What Happened?

Shares of medical device company Integra LifeSciences (NASDAQ: IART) fell 5.7% in the afternoon session after the stock's negative momentum continued as the company reported weak third-quarter results and analysts lowered their price targets on the stock. 

The medical device company missed Wall Street's revenue expectations, and its sales guidance for the next quarter of $430 million also underwhelmed, coming in below analysts' estimates. Furthermore, management lowered its full-year adjusted earnings per share guidance. The company attributed the revenue shortfall to supply interruptions in its Codman Specialty Surgical business and not having enough inventory, which offset healthy demand elsewhere. Following the report, analysts adjusted their outlooks. Truist Securities kept its "Hold" rating but cut its price target on the stock to $13.00 from $15.00. This followed a similar move from Citigroup, which had previously lowered its price target to $11.00 from $12.00 while maintaining a "sell" rating.

The shares closed the day at $11.48, down 4.5% from previous close.

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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. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock dropped 23% on the news that 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.

Integra LifeSciences is down 50.1% since the beginning of the year, and at $11.49 per share, it is trading 57% 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 $244.05.

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