Integra LifeSciences Holdings Corporation (IART – Analyst Report) reported adjusted earnings per share (EPS) of 79 cents in the second quarter of 2015, up 16.2% year over year. Adjusted EPS also beat the Zacks Consensus Estimate by 8.2%.
Total revenue in the reported quarter increased 5.5% to $244.1 million, comfortably beating the Zacks Consensus Estimate of $229 million. Organic sales growth in the second quarter was 5.1%, in line with the company’s guidance. Notably, this marked the third consecutive quarter exhibiting organic growth over 5%.
Excluding revenues from Spine on a continuing operation basis, first-half 2015 organic sales growth came in at roughly 8%. This positions Integra on a more sustainable quarterly progression trend through the second half of the year, with a projection of 6% organic growth for full year 2015.
In the second quarter, Integra observed strong growth in both specialty surgical solutions and orthopedics and tissue technologies. Regenerative product sales including dural repair, open wound and nerve were the primary drivers of organic growth in the quarter.
Revenues from the Specialty Surgical Solutions segment increased 6.7% year over year to $146.7 million on increased demand in both the U.S. and international markets. Global sales of dural repair products grew in line with the overall segment, reflecting stable utilization of products. Precision tools and instrument sales increased in low single digits, excluding MicroFrance. While MicroFrance performed in line with Integra’s expectations, sales in neural critical care and tissue ablation were slightly up at constant exchange rate or CER.
Revenues from the Orthopedics and Tissue Technologies segment climbed 10.1% to $63.8 million. Within this segment, sales from the regenerative technologies franchise increased in the high teens on the back of higher demand in the U.S. for Integra’s broad portfolio of skin, wound and nerve products. Upper extremities posted double-digit growth with increasing adoption of shoulder and new wrist arthroplasty products. However, sales in lower extremities were flat on a year-over-year basis.
Revenues from the Spine segment dropped 6.5% to $33.5 million in the reported quarter. While there were improvements in orthobiologics and international Spine sales year over year, these were more than offset by hardware declines in the U.S.