Reflecting On Medical Devices & Supplies - Specialty Stocks’ Q3 Earnings: Haemonetics (NYSE:HAE)

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the medical devices & supplies - specialty stocks, including Haemonetics 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 7 medical devices & supplies - specialty stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.7%.

In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.

Haemonetics

With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.

Haemonetics reported revenues of $327.3 million, down 5.3% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue estimates.

Haemonetics scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 30.2% since reporting and currently trades at $66.06.

Best Q3: STAAR Surgical

With over 2.5 million implants performed worldwide, STAAR Surgical designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.

STAAR Surgical reported revenues of $94.73 million, up 6.9% year on year, outperforming analysts’ expectations by 4.3%. The business had a stunning quarter with a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 28.2% since reporting. It currently trades at $19.12.

Weakest Q3: Integer Holdings

With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.

Integer Holdings reported revenues of $467.7 million, up 8.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and full-year revenue guidance slightly missing analysts’ expectations.

As expected, the stock is down 21.3% since the results and currently trades at $85.92.

Read our full analysis of Integer Holdings’s results here.

Bausch + Lomb

With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb 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 7.1% year on year. This print met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates but constant currency revenue in line with analysts’ estimates.

Bausch + Lomb pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 10.3% since reporting and currently trades at $16.77.

Read our full, actionable report on Bausch + Lomb here, it’s free.

Enovis

With a focus on helping patients regain or maintain their natural motion, Enovis develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.

Enovis reported revenues of $548.9 million, up 8.6% year on year. This number topped analysts’ expectations by 2.1%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is down 29.6% since reporting and currently trades at $22.18.

Read our full, actionable report on Enovis here, it’s free.