Looking back on medical devices & supplies - specialty stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including STAAR Surgical (NASDAQ: STAA) 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 Q4. As a group, revenues missed analysts’ consensus estimates by 4.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.7% since the latest earnings results.
Slowest Q4: STAAR Surgical (NASDAQ: STAA)
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
STAAR Surgical reported revenues of $48.95 million, down 35.8% year on year. This print fell short of analysts’ expectations by 36.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS and constant currency revenue estimates.
STAAR Surgical delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 2.9% since reporting and currently trades at $15.56.
Read our full report on STAAR Surgical here, it’s free.
Best Q4: 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 $239.7 million, up 24.5% year on year, outperforming analysts’ expectations by 0.9%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
Inspire Medical Systems scored the fastest revenue growth among its peers. The stock is down 19.8% since reporting. It currently trades at $145.08.
Is now the time to buy Inspire Medical Systems? Access our full analysis of the earnings results here, it’s free.
Haemonetics (NYSE: HAE)
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
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.
As expected, the stock is down 15.9% since the results and currently trades at $59.90.
Read our full analysis of Haemonetics’s results here.
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 $449.5 million, up 11.1% year on year. This result topped analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also recorded 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 20% since reporting and currently trades at $114.83.
Read our full, actionable report on Integer Holdings 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 $561 million, up 23.3% year on year. This number surpassed analysts’ expectations by 1%. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
The stock is down 25.3% since reporting and currently trades at $31.47.
Read our full, actionable report on Enovis here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 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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