Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Haemonetics (NYSE: HAE) and the best and worst performers in the medical devices & supplies - specialty industry.

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 Q1. As a group, revenues beat analysts’ consensus estimates by 0.9%.

While some medical devices & supplies - specialty stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.2% since the latest earnings results.

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 $330.6 million, down 3.7% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ organic revenue estimates.

Interestingly, the stock is up 20.7% since reporting and currently trades at $77.52.

Is now the time to buy Haemonetics? Access our full analysis of the earnings results here, it’s free.

Best Q1: 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 $201.3 million, up 22.7% year on year, outperforming analysts’ expectations by 3.1%. 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 delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 15.5% since reporting. It currently trades at $134.45.

Is now the time to buy Inspire Medical Systems? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Globus Medical (NYSE: GMED)

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Globus Medical reported revenues of $598.1 million, down 1.4% year on year, falling short of analysts’ expectations by 4.7%. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

Globus Medical delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 21.5% since the results and currently trades at $56.84.

Read our full analysis of Globus Medical’s results here.

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 $42.59 million, down 44.9% year on year. This number beat analysts’ expectations by 5.5%. It was a strong quarter as it also produced an impressive beat of analysts’ constant currency revenue estimates.

STAAR Surgical delivered the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is down 12.5% since reporting and currently trades at $17.

Read our full, actionable report on STAAR Surgical here, it’s free.

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 $437.4 million, up 7.3% year on year. This result surpassed analysts’ expectations by 2%. It was a strong quarter as it also recorded a solid beat of analysts’ full-year EPS guidance and organic revenue estimates.

The stock is flat since reporting and currently trades at $120.47.

Read our full, actionable report on Integer Holdings here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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