Integra LifeSciences boosts outlook

Integra LifeSciences (NSDQ:IART) yesterday raised its long-term forecast out to 2018, saying it expects to post higher numbers across the board.

The new outlook calls for adjusted earnings-per-share growth of 12% or more, up from 10% previously, on organic sales growth of 6% to 8%, up from prior guidance of 5% to 7%. Gross margins are expected to be 70% to 71%, up from 68% to 70%, the Plainsboro, N.J.-based company told analysts yesterday during its investor day meeting in New York.

“Our strategy to execute, optimize and accelerate growth has shown results. We are at an inflection point, moving toward a new phase of growth, and today we will update the focus of that strategy and update our 2018 financial outlook,” president & CEO Peter Arduini said in prepared remarks. “Beyond 2018, we have opportunities to drive additional margin improvement with scale.”

Barclays analyst Matt Taylor said Integra’s targets are achievable and might even be a tad conservative.

“Given the momentum in the business, we think these targets are reasonable, with some room for upside if [diabetic foot ulcer] and extremities outperform, or IART can pull back more on G&A or generate tax leverage,” Taylor wrote today in a note to investors.

It’s been a busy year for Integra. The company closed the spinout of its spine business in July, creating SeaSpine Holdings (NSDQ:SPNE), and acquired TEI Biosciences and TEI Medical for $312 million that same month. In August Integra floated a $200 million follow-on offering. And just this month Integra closed on the buyout of the U.S. rights to Tornier‘s Salto Talaris and Salto Talaris XT ankle replacements and Futura silastic toe replacements, as part of Tornier’s $3.3 billion merger with Wright Medical (NSDQ:WMGI).

IART shares closed down -0.07% at $63.02 apiece yesterday.

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