- Total revenues of Integra LifeSciences for the second quarter were $231.4 million, an increase of $25.8 million, or 12.6%, year-over-year.
- Adjusted net income for the quarter was $0.68 per diluted share, up 20% from the year-ago period.
- In my original article, I mentioned that the company's revenues are expected to grow at a CAGR of 7.1% for the next four years.
- The company's second-quarter revenue growth of 12.6% confirms my view.
Integra LifeSciences (NASDAQ:IART) recently reported its financial results for the second quarter ended June 30, 2014. The company registered total revenues of $231.4 million, which increased $25.8 million, or 12.6%, over the same period of the prior year. Adjusted net income for the quarter came in at $22.2 million, or $0.68 per diluted share, compared to $14.8 million, or $0.53 per diluted share, in the year-ago period. Further, the company generated $16.4 million in cash flows from operations, and invested $9.4 million in capital expenditures during the quarter.
Peter Arduini, Integra's president and CEO, said, "Our global Neurosurgery business, which was 40% of our total revenue, posted growth across all major product lines." The company expects that its full-year 2014 revenues would be between $920 million and $940 million, and maintains its original guidance for adjusted earnings per diluted share between $2.88 and $3.06. From investors' point of view, Integra's second-quarter earnings and guidance for the rest of the year are quite encouraging. The stock reacted positively immediately after the earnings.
In my original analysis, I mentioned that the company's revenues are expected to grow at a CAGR of 7.1% for the next four years, in line with the bionics market. I expect that Integra's dural repair as well as skin and wound businesses will register strong performance in 2014. The company's 2014 adjusted EPS was expected to be around $3.15, almost in line with the company's guidance. I believe that Integra's shares are heading towards $60 in the medium term.
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