Looking back on medical devices & supplies - specialty stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Enovis (NYSE: ENOV) 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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.7%.

Luckily, medical devices & supplies - specialty stocks have performed well with share prices up 11% on average since the latest earnings results.

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 $548.9 million, up 8.6% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and revenue estimates.

“We delivered solid results in the third quarter, reflecting continued progress by our teams around the world,” said Damien McDonald, Chief Executive Officer of Enovis.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $31.25.

Is now the time to buy Enovis? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $94.73 million, up 6.9% year on year, outperforming analysts’ expectations by 4.3%. The business had a stunning quarter with an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $26.38.

Is now the time to buy STAAR Surgical? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $467.7 million, up 8.4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EBITDA and revenue guidance slightly missing analysts’ expectations.

As expected, the stock is down 36.5% since the results and currently trades at $69.41.

Read our full analysis of Integer Holdings’s results here.

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 $327.3 million, down 5.3% year on year. This result surpassed analysts’ expectations by 5.3%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue estimates.

Haemonetics pulled off the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 46.6% since reporting and currently trades at $74.38.

Read our full, actionable report on Haemonetics here, it’s free for active Edge members.

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 $769 million, up 22.9% year on year. This print topped analysts’ expectations by 4.7%. It was an exceptional quarter as it also recorded a solid beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

Globus Medical achieved the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 37.3% since reporting and currently trades at $84.72.

Read our full, actionable report on Globus Medical here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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