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Integer Holdings (ITGR) Q1 Earnings: What's in the Cards?
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Integer Holdings Corporation (ITGR - Free Report) is scheduled to release first-quarter 2019 results on May 2, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 13%. Further, it has an average four-quarter positive surprise of 7.9%.
Let’s take a look at how things are shaping up prior to this announcement.
Which Way are Q1 Estimates Treading?
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $304.1 million, indicating a decline of 20.3% from the year-ago quarter. The consensus estimate for the top line is pegged at 80 cents, reflecting an improvement of 31.2% from the year-ago reported figure.
Factors to Influence Q1
Cardio & Vascular product line
In the first quarter, Integer Holdings anticipates better-than-expected sales performance for this product line. The company’s efforts in development and execution of its product line strategies is likely to drive higher market penetration in the high-growth Cardio & Vascular (C&V) market segments, consequently contributing to the expected sales growth.
However, slower-than-expected growth of new customer programs and the life cycle maturity of one of the specific programs in the electrophysiology market will impact the anticipated improvement in the to-be-reported quarter.
Nonetheless, Integer Holdings’ long-term objective in Cardio & Vascular is to maintain double-digit growth on a sustainable basis. The trend is anticipated to impact the to-be-reported quarter.
A solid display from this product line might contribute to the company’s top line in the first quarter. In fact, for 2019, Integer Holdings anticipates reported revenues between $1.26 billion and $1.28 billion, refelecting year-over-year growth of 4-5%. We expect the company to deliver top-line growth in the to-be-reported quarter as well.
Cardiac & Neuromodulation
Solid spinal cord stimulation product demand will drive revenues for neuromodulation in the first quarter. However, tepid sales performance at cardiac rhythm management might offset the results at this segment.
Strong prospects in the neuromodulation market are key catalysts for Cardiac & Neuromodulation product line’s long-term growth.
Electrochem
New customers as well as products, along with renewed military market funding are estimated to bolster results at this segment in the to-be-reported quarter.
Integer Holdings Corporation Price and EPS Surprise
Better-than-expected performance across the C&V, Cardiac & Neuromodulation as well as AS&P portable product lines is likely to drive sales growth in the first quarter. The anticipated improvement can be attributed to rise in demand for orthopedics products.
For 2019, the company projects sales growth in the band of 4-6%, which is within the range of the company’s estimated market growth of about 4% to 5%.
It is to be noted, Integer Holdings expects adjusted earnings per share (EPS) in the range of $4.05-$4.25 for 2019. This indicates an improvement of 7-12% from the year-ago quarter. Lower interest expenses and taxes are projected to positively impact the to-be-reported quarter’s results.
Declining Non-Medical Sales
The company is expected to witness a decline in Non-Medical sales in the to-be-reported quarter mainly due to North American drilling activity and reduction in customer inventory.
What Our Quantitative Model Suggests
Per the proven Zacks model, a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Integer Holdings has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.
Please note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Stocks Worth a Look
Here are some stocks worth considering from the same space as these have the right combination of elements to beat on earnings this time around.
Teleflex Incorporated (TFX - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank #3.
T2 Biosystems, Inc. (TTOO - Free Report) has an Earnings ESP of +5.62% and a Zacks Rank #3.
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Integer Holdings (ITGR) Q1 Earnings: What's in the Cards?
Integer Holdings Corporation (ITGR - Free Report) is scheduled to release first-quarter 2019 results on May 2, before the opening bell.
In the last reported quarter, the company delivered a positive earnings surprise of 13%. Further, it has an average four-quarter positive surprise of 7.9%.
Let’s take a look at how things are shaping up prior to this announcement.
Which Way are Q1 Estimates Treading?
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $304.1 million, indicating a decline of 20.3% from the year-ago quarter. The consensus estimate for the top line is pegged at 80 cents, reflecting an improvement of 31.2% from the year-ago reported figure.
Factors to Influence Q1
Cardio & Vascular product line
In the first quarter, Integer Holdings anticipates better-than-expected sales performance for this product line. The company’s efforts in development and execution of its product line strategies is likely to drive higher market penetration in the high-growth Cardio & Vascular (C&V) market segments, consequently contributing to the expected sales growth.
However, slower-than-expected growth of new customer programs and the life cycle maturity of one of the specific programs in the electrophysiology market will impact the anticipated improvement in the to-be-reported quarter.
Nonetheless, Integer Holdings’ long-term objective in Cardio & Vascular is to maintain double-digit growth on a sustainable basis. The trend is anticipated to impact the to-be-reported quarter.
A solid display from this product line might contribute to the company’s top line in the first quarter. In fact, for 2019, Integer Holdings anticipates reported revenues between $1.26 billion and $1.28 billion, refelecting year-over-year growth of 4-5%. We expect the company to deliver top-line growth in the to-be-reported quarter as well.
Cardiac & Neuromodulation
Solid spinal cord stimulation product demand will drive revenues for neuromodulation in the first quarter. However, tepid sales performance at cardiac rhythm management might offset the results at this segment.
Strong prospects in the neuromodulation market are key catalysts for Cardiac & Neuromodulation product line’s long-term growth.
Electrochem
New customers as well as products, along with renewed military market funding are estimated to bolster results at this segment in the to-be-reported quarter.
Integer Holdings Corporation Price and EPS Surprise
Integer Holdings Corporation Price and EPS Surprise | Integer Holdings Corporation Quote
Sales Growth
Better-than-expected performance across the C&V, Cardiac & Neuromodulation as well as AS&P portable product lines is likely to drive sales growth in the first quarter. The anticipated improvement can be attributed to rise in demand for orthopedics products.
For 2019, the company projects sales growth in the band of 4-6%, which is within the range of the company’s estimated market growth of about 4% to 5%.
It is to be noted, Integer Holdings expects adjusted earnings per share (EPS) in the range of $4.05-$4.25 for 2019. This indicates an improvement of 7-12% from the year-ago quarter. Lower interest expenses and taxes are projected to positively impact the to-be-reported quarter’s results.
Declining Non-Medical Sales
The company is expected to witness a decline in Non-Medical sales in the to-be-reported quarter mainly due to North American drilling activity and reduction in customer inventory.
What Our Quantitative Model Suggests
Per the proven Zacks model, a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Integer Holdings has a Zacks Rank #3 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.
Please note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Stocks Worth a Look
Here are some stocks worth considering from the same space as these have the right combination of elements to beat on earnings this time around.
Teleflex Incorporated (TFX - Free Report) has an Earnings ESP of +1.65% and a Zacks Rank #3.
T2 Biosystems, Inc. (TTOO - Free Report) has an Earnings ESP of +5.62% and a Zacks Rank #3.
STERIS plc (STE - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>