A month has gone by since the last earnings report for Integer Holdings Corporation ITGR. Shares have added about 9.7% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Integer Q1 Earnings Miss, Revenues Beat Estimates
Integer reported adjusted earnings of $0.41 per share in the first quarter of 2017, $0.01 down on a year-over-year basis. Also, earnings missed the Zacks Consensus Estimate of $0.58.
Revenues rose 4% year over year to $345.4 million in the first quarter and also exceeded the Zacks Consensus Estimate of $332 million.
Sales grew on a reported and organic basis in the first quarter, courtesy of solid performances by the company’s Cardio & Vascular, Advanced Surgical and Orthopedics & Portable Medical product lines.
Quarter Details
Integer operates through three segments: Advanced Surgical, Orthopedics and Portable Medical; Cardio and Vascular; and Cardiac/Neuromodulation.
Advanced Surgical, Orthopedics, and Portable Medical: Revenues in the first quarter was $105.1 million, highlighting a 6.9% increase over the prior-year quarter.
On a comparable organic constant currency basis, Advanced Surgical, Orthopedics & Portable Medical revenues jumped 8% year over year. This was primarily driven by solid performance in Portable Medical space and several launches under the orthopedics and arthroscopic platforms.
Cardio and Vascular: Revenues at the segment totaled $125.1 million, reflecting a 10% increase over the prior-year quarter. This came on the back of strong demand for existing OEM product lines and contract components.
On a comparable organic constant currency basis, revenues in the reported quarter increased 10% over the prior year, chiefly driven by increased customer demand for electrophysiology and vascular access products.
Cardiac/Neuromodulation: Revenues at this segment were $103.8 million, a 4% decrease from the prior-year quarter. On a comparable organic constant currency basis, Cardiac & Neuromodulation revenues fell 3%.
However, relentless focus on customer relationships, numerous value-added services and opportunities for economic efficiencies are expected to drive sales at the segment. In fact, the company is well positioned to optimize total cost of ownership and supply chain control at this segment.
Guidance
Integer reaffirmed its full-year 2017 sales & adjusted earnings per share guidance.
Integer continues to expect revenues in the range of $1.390–$1.430 billion on an adjusted comparable basis. Adjusted earnings are projected in the range of $2.70–$3.10 per share for full-year 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Integer Holdings Corporation Price and Consensus
VGM Scores
At this time, Integer’s stock has a strong Growth Score of ‘A’, though it is lagging on the momentum front with a ‘D’. However, the stock was allocated a grade of ‘A’ on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of ‘A’. If you aren’t focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and growth investors.
Outlook
The stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.
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Zacks Investment Research
June 12, 2017 at 02:20PM
from Zacks Equity Research
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