A Look Back at Medical Devices & Supplies - Specialty Stocks’ Q3 Earnings: STAAR Surgical (NASDAQ:STAA) Vs The Rest Of The Pack
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at STAAR Surgical (NASDAQ:STAA) and the best and worst performers in the medical devices & supplies - specialty industry.
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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.9%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.5% since the latest earnings results.
STAAR Surgical (NASDAQ:STAA)
Founded in 1982, STAAR Surgical (NASDAQ:STAA) develops and manufactures implantable lenses for vision correction, focusing on products designed to treat myopia, hyperopia, astigmatism, and presbyopia.
STAAR Surgical reported revenues of $88.59 million, up 10.3% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ constant currency revenue estimates.
“In the third quarter, we achieved double-digit sales growth against a macroeconomic environment that softened in the second half of the quarter, particularly in China,” said Tom Frinzi, President and CEO of STAAR Surgical.
The stock is down 39.6% since reporting and currently trades at $17.80.
Is now the time to buy STAAR Surgical? Access our full analysis of the earnings results here, it’s free .
Best Q3: Inspire Medical Systems (NYSE:INSP)
Founded in 2007, Inspire Medical Systems (NYSE:INSP) develops and markets products for obstructive sleep apnea (OSA), with its flagship product being a neurostimulation system designed to improve breathing during sleep.
Inspire Medical Systems reported revenues of $239.7 million, up 24.5% year on year, outperforming analysts’ expectations by 0.9%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
Inspire Medical Systems delivered the fastest revenue growth among its peers. The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $186.51.
Is now the time to buy Inspire Medical Systems? Access our full analysis of the earnings results here, it’s free .
Weakest Q3: Haemonetics (NYSE:HAE)
Founded in 1971, Haemonetics Corporation (NYSE:HAE) offers products for plasma collection, blood donation, and surgical and critical care.
Haemonetics reported revenues of $348.5 million, up 3.7% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted organic revenue in line with analysts’ estimates.
Haemonetics delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 9.4% since the results and currently trades at $64.57.
Read our full analysis of Haemonetics’s results here.
Enovis (NYSE:ENOV)
Originally founded in 1995 as diversified industrial company Colfax Corporation, Enovis Corporation (NYSE:ENOV) focuses on medical technology for orthopedic care, rehabilitation, and surgical products.
Enovis reported revenues of $561 million, up 23.3% year on year. This number beat analysts’ expectations by 1%. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
The stock is down 9.5% since reporting and currently trades at $38.12.
Read our full, actionable report on Enovis here, it’s free.
Integer Holdings (NYSE:ITGR)
Founded in 1940, Integer Holdings (NYSE:ITGR) designs and manufactures critical components and systems for medical device original equipment manufacturers (OEMs), with a focus on cardiovascular, neurostimulation, and portable medical device markets.
Integer Holdings reported revenues of $449.5 million, up 11.1% year on year. This result surpassed analysts’ expectations by 0.6%. Taking a step back, it was a mixed quarter as it also logged full-year revenue guidance slightly topping analysts’ expectations but a miss of analysts’ EPS estimates.
Integer Holdings scored the highest full-year guidance raise among its peers. The stock is down 14.6% since reporting and currently trades at $122.45.
Read our full, actionable report on Integer Holdings here, it’s free.
Market Update
In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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