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 medical devices & supplies - specialty stocks fared in Q4, starting with Enovis (NYSE: ENOV).

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 Q4. As a group, revenues missed analysts’ consensus estimates by 2.1%.

While some medical devices & supplies - specialty stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% 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 $575.8 million, up 2.6% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates but a slight miss of analysts’ revenue estimates.

“Our 2025 performance reflects a year of meaningful operational progress for the Company. We advanced our second-year Lima integration priorities, operated effectively in a dynamic global environment, and continued to demonstrate above-market organic growth with sustainable year-over-year operating improvements which included positive free cash flow and debt reduction,” said Damien McDonald, Chief Executive Officer of Enovis.

Interestingly, the stock is up 10.1% since reporting and currently trades at $24.58.

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

Best Q4: 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 $826.4 million, up 25.7% year on year, outperforming analysts’ expectations by 3.2%. The business had an exceptional quarter with an impressive beat of analysts’ full-year EPS guidance estimates and a solid beat of analysts’ revenue estimates.

Globus Medical delivered the biggest analyst estimates beat and 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 4.7% since reporting. It currently trades at $87.53.

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

Weakest Q4: 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 $57.8 million, up 18.1% year on year, falling short of analysts’ expectations by 23.8%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

STAAR Surgical delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.1% since the results and currently trades at $18.33.

Read our full analysis of STAAR Surgical’s results here.

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 $472.1 million, up 5% year on year. This number surpassed analysts’ expectations by 2%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ full-year EPS guidance estimates and a solid beat of analysts’ organic revenue estimates.

The stock is down 3.2% since reporting and currently trades at $83.69.

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

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 $269.1 million, up 12.2% year on year. This result beat analysts’ expectations by 1.1%. It was a strong quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Inspire Medical Systems achieved the highest full-year guidance raise among its peers. The stock is down 9.1% since reporting and currently trades at $62.

Read our full, actionable report on Inspire Medical Systems here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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