Integra LifeSciences downgraded at Citi on recall, lowered guidance

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anonymous

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Integra downgraded at Citi on recall, lowered guidance | Seeking Alpha
  • Citi has downgraded Integra LifeSciences (NASDAQ:IART) to sell from neutral citing a large global recall of some of its products and lowered Q2 2023 guidance.
  • The firm also lowered its price target to $39 from $59 (~23% downside based on Monday's close).
  • Shares are down ~14% in Tuesday morning trading.
  • Earlier Tuesday, Integra (IART) said it was voluntarily recalling all products manufactured at a Boston that were distributed between March 1, 2018 and May 22, 2023. The company said that the products could have higher levels of endotoxins than permitted.
  • As a result of the recall, Integra (IART) will incur an impairment charge of ~$22M related to the write-off of inventories.
  • In addition, the company is lowering Q2 23 revenue guidance to $372-376M from $396-400M and EPS to $0.55-0.59 from $0.75-0.79.
  • Also, if the recall continues through 2023, Integra (IART) estimates a revenue impact of $60M and EPS impact of $0.35.
  • "While the recall is prudent, it is another hurdle and with an uncertain remediation timeline we expect further guidance downgrades," the Citi team wrote.
SEC Filing | Integra LifeSciences Holdings Corporation
 


anonymous said:
Integra downgraded at Citi on recall, lowered guidance | Seeking Alpha
  • Citi has downgraded Integra LifeSciences (NASDAQ:IART) to sell from neutral citing a large global recall of some of its products and lowered Q2 2023 guidance.
  • The firm also lowered its price target to $39 from $59 (~23% downside based on Monday's close).
  • Shares are down ~14% in Tuesday morning trading.
  • Earlier Tuesday, Integra (IART) said it was voluntarily recalling all products manufactured at a Boston that were distributed between March 1, 2018 and May 22, 2023. The company said that the products could have higher levels of endotoxins than permitted.
  • As a result of the recall, Integra (IART) will incur an impairment charge of ~$22M related to the write-off of inventories.
  • In addition, the company is lowering Q2 23 revenue guidance to $372-376M from $396-400M and EPS to $0.55-0.59 from $0.75-0.79.
  • Also, if the recall continues through 2023, Integra (IART) estimates a revenue impact of $60M and EPS impact of $0.35.
  • "While the recall is prudent, it is another hurdle and with an uncertain remediation timeline we expect further guidance downgrades," the Citi team wrote.
SEC Filing | Integra LifeSciences Holdings Corporation
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Our leadership (or lack thereof) has delivered us to this point. We have finally dug ourself a hole that our sales team cannot get Integra out of. Changes at the top are needed or this will only get worse.
 










They have been kicking that can down the road for 6 years. Arduini knew, Bob certainly was the leader trying to keep this hidden. Bartlett still doesn’t know what a burn unit looks like. Stock should be at 20 a share
 






Can’t imagine it will be “resolved” that quickly. At least they have that ACell garbage Good luck. Cutting costs caught up w ya huh. Can only fool the street for so long with running lean and jackin up price 4 times a year
 


I received my recall return box today. It had my address but someone else's name on it. I am sure my accounts also received incorrect information as well. There is truly no limit as to how far we can sink. We cant do anything right. And the post above about cost cutting and being skin and bones in every department is spot on. Enjoy your time in Aruba ELT, you most certainly have not earned any of it.
 










The problem with being a WRC sales rep at Integra is its really hard to get any higher than 80%’ish market share in collagen (Integra’s market).

When this happens for a long time (like Integra has experienced) the pressure mounts. It’s like trying to breath in a room with water 4 inches from the ceiling.

Old business gets attacked harder, new business gets neglected, innovation becomes non-existent.

New business efforts get overly scrutinized, belts tighten and people start realizing the light at the end of the tunnel is a freight train.
 











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