Looking back on medical devices & supplies - specialty stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Integer Holdings (NYSE: ITGR) 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 mixed Q1. 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 9.6% since the latest earnings results.
Integer Holdings (NYSE: ITGR)
With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.
Integer Holdings reported revenues of $437.4 million, up 7.3% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a strong quarter for the company with a solid beat of analysts’ full-year EPS guidance estimates.
“Integer started the year off strong with first quarter 2025 sales growing at 7% year-over-year as we continue to execute our strategy by launching new products and adding capabilities in targeted growth markets. Integer also delivered 14% adjusted operating income growth,” said Joseph Dziedzic, Integer’s president and CEO.
Unsurprisingly, the stock is down 6.5% since reporting and currently trades at $112.49.
Is now the time to buy Integer Holdings? Access our full analysis of the earnings results here, it’s free.
Best Q1: Inspire Medical Systems (NYSE: INSP)
Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE: INSP) 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 $201.3 million, up 22.7% year on year, outperforming analysts’ expectations by 3.1%. 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. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 20.3% since reporting. It currently trades at $126.83.
Is now the time to buy Inspire Medical Systems? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Globus Medical (NYSE: GMED)
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Globus Medical reported revenues of $598.1 million, down 1.4% year on year, falling short of analysts’ expectations by 4.7%. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS estimates.
Globus Medical delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 22.2% since the results and currently trades at $56.34.
Read our full analysis of Globus Medical’s results here.
Bausch + Lomb (NYSE: BLCO)
With a nearly 170-year history dedicated to vision care and eye health innovation, Bausch + Lomb (NYSE: BLCO) 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 $1.14 billion, up 3.5% year on year. This print lagged analysts' expectations by 0.7%. It was a slower quarter as it also logged a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.
The stock is up 1.3% since reporting and currently trades at $13.90.
Read our full, actionable report on Bausch + Lomb here, it’s free.
Enovis (NYSE: ENOV)
With a focus on helping patients regain or maintain their natural motion, Enovis (NYSE: ENOV) develops and manufactures medical devices for orthopedic care, from injury prevention and pain management to joint replacement and rehabilitation.
Enovis reported revenues of $558.8 million, up 8.3% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ full-year EPS guidance estimates and full-year EBITDA guidance missing analysts’ expectations.
The stock is down 21.9% since reporting and currently trades at $26.66.
Read our full, actionable report on Enovis here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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