The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how surgical equipment & consumables - specialty stocks fared in Q3, starting with LeMaitre (NASDAQ: LMAT).

The surgical equipment and consumables industry provides tools, devices, and disposable products essential for surgeries and medical procedures. These companies therefore benefit from relatively consistent demand, driven by the ongoing need for medical interventions, recurring revenue from consumables, and long-term contracts with hospitals and healthcare providers. However, the high costs of R&D and regulatory compliance, coupled with intense competition and pricing pressures from cost-conscious customers, can constrain profitability. Over the next few years, tailwinds include aging populations, which tend to need surgical interventions at higher rates. The increasing integration of AI and robotics into surgical procedures could also create opportunities for differentiation and innovation. However, the industry faces headwinds including potential supply chain vulnerabilities, evolving regulatory requirements, and more widespread efforts to make healthcare less costly.

The 4 surgical equipment & consumables - specialty stocks we track reported a mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

LeMaitre (NASDAQ: LMAT)

Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.

LeMaitre reported revenues of $61.05 million, up 11.4% year on year. This print fell short of analysts’ expectations by 2%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

LeMaitre delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 1.2% since reporting and currently trades at $84.54.

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

Best Q3: Intuitive Surgical (NASDAQ: ISRG)

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Intuitive Surgical reported revenues of $2.51 billion, up 22.9% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Intuitive Surgical pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 24.7% since reporting. It currently trades at $576.85.

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

Weakest Q3: Integra LifeSciences (NASDAQ: IART)

Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ: IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.

Integra LifeSciences reported revenues of $402.1 million, up 5.6% year on year, falling short of analysts’ expectations by 2.9%. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Integra LifeSciences delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 18% since the results and currently trades at $12.66.

Read our full analysis of Integra LifeSciences’s results here.

Teleflex (NYSE: TFX)

With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE: TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.

Teleflex reported revenues of $892.9 million, up 16.8% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but constant currency revenue in line with analysts’ estimates.

The stock is down 2% since reporting and currently trades at $122.30.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.