Integra LifeSciences Holdings Corporation (NASDAQ:IART) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were US$1.4b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.57, an impressive 114% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the twelve analysts covering Integra LifeSciences Holdings are now predicting revenues of US$1.53b in 2021. If met, this would reflect a decent 12% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$1.58, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$1.54b and earnings per share (EPS) of US$1.57 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The consensus price target rose 6.1% to US$70.69despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Integra LifeSciences Holdings' earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Integra LifeSciences Holdings, with the most bullish analyst valuing it at US$80.00 and the most bearish at US$50.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Integra LifeSciences Holdings'historical trends, as next year's 12% revenue growth is roughly in line with 11% annual revenue growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.8% next year. So although Integra LifeSciences Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Integra LifeSciences Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Integra LifeSciences Holdings going out to 2025, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Integra LifeSciences Holdings (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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