STAAR Surgical (NASDAQ:STAA) Q3 Earnings: Leading The Medical Devices & Supplies - Specialty Pack

Looking back on medical devices & supplies - specialty stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including STAAR Surgical 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%.

Luckily, medical devices & supplies - specialty stocks have performed well with share prices up 23.8% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 4.3%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $26.58.

Is now the time to buy STAAR Surgical? Access our full analysis of the earnings results here, it’s free for active Edge members.

Globus Medical

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Globus Medical reported revenues of $769 million, up 22.9% year on year, outperforming analysts’ expectations by 4.7%. The business had a stunning quarter with an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

Globus Medical delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 43.8% since reporting. It currently trades at $88.77.

Is now the time to buy Globus Medical? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 35.6% since the results and currently trades at $70.26.

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

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 number beat analysts’ expectations by 5.3%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

Haemonetics scored the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 65.3% since reporting and currently trades at $83.82.

Read our full, actionable report on Haemonetics here, it’s free for active Edge members.

Inspire Medical Systems

Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.

Inspire Medical Systems reported revenues of $224.5 million, up 10.5% year on year. This print topped analysts’ expectations by 1.9%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

The stock is up 92.9% since reporting and currently trades at $142.16.

Read our full, actionable report on Inspire Medical Systems here, it’s free for active Edge members.