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Integer Holdings (ITGR) Gains 2.4% Post Q4 Earnings Beat
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Shares of Integer Holdings Corporation (ITGR - Free Report) have gained 2.4% on Feb 22, following the company's fourth-quarter 2020 results.
The company reported fourth-quarter 2020 adjusted earnings per share (EPS) of 71 cents, which outpaced the Zacks Consensus Estimate of 62 cents by 14.5%. However, the bottom line plunged 43.2% on a year-over-year basis.
For the full-year 2020, the company reported adjusted EPS of $2.77 per share, down 40.8% from 2019.
Revenue Details
Revenues declined 17.4% year over year to $268.9 million on a reported basis. Nonetheless, the top line beat the Zacks Consensus Estimate by 2.2%.
The company delivered $1.07 billion, down 14.7% from 2019.
Segmental Analysis
Integer Holdings operates through two segments — Medical Sales and Non-Medical Sales.
Medical Sales
At the segment, reported revenues were $260.6 million, down 16.4% year over year. Revenues declined 16.7% from the prior-year quarter on an organic basis.
Medical Sales has three sub-segments — Advanced Surgical, Orthopedics and Portable Medical (AS&O); Cardio & Vascular; and Cardiac & Neuromodulation.
Advanced Surgical, Orthopedics and Portable Medical
Integer Holdings’ Advanced Surgical, Orthopedics & Portable Medical segment has been divested to Viant. Consequently, revenues at the segment comprise net sales from acquirer Viant under supply agreements associated with the divestiture.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Revenues amounted to $29.7 million, down 12.2% year over year and 12.2% on an organic basis. Per management, the downside was due to the impact of the COVID-19 pandemic and a blend of customers’ responses.
Cardio & Vascular
Revenues at the segment totaled $137.1 million, down 13.5% from the prior-year quarter and 14.3% organically. Per management, this can be attributed to the impact of the pandemic and customers’ responses throughout nearly all Cardio & Vascular markets.
Cardiac & Neuromodulation
Revenues at this segment totaled $93.8 million, declining 21.3% on both year-over-year and organic basis. This was due to a slump in CRM and Neuromodulation (corresponding to the impact of the pandemic and a blend of customers’ responses).
Non-Medical Sales
Reported revenues at the segment totaled $8.3 million, down 40.6% on both year-over-year and organic basis.
Margin Analysis
Integer Holdings generated a gross profit of $73.2 million in the fourth quarter, down 3.7% year over year. As a percentage of revenues, gross margin in the reported quarter expanded 390 basis points (bps) to 27.2%.
Selling, general and administrative expenses (SG&A) were $3.5 million, down 6.9% year over year.
Research, development and engineering costs were $10.6 million in the quarter, down 10.3% year over year.
Total operating income amounted to $27.6 million, which improved 21.8% year over year. Operating margin in the quarter under review was 10.3%, up 340 bps year over year.
2021 Guidance
For first-quarter 2021, the company projects sales to be $280-$290 million. Adjusted operating income is expected between $42 million and $47 million.
For the full-year 2021, the company projects sales to be $1.16-$1.20 billion. The Zacks Consensus Estimate for the same is pegged at $1.18 billion.
Adjusted EPS is anticipated to be $3.40-$3.90. The consensus mark stands at $3.60 per share.
Adjusted operating income is projected to be $170-$190 million.
Summing Up
Integer Holdings exited the fourth quarter on a strong note, wherein both earnings and revenues beat their respective Zacks Consensus Estimates. However, the company witnessed weak performance across its segments in the quarter under review.
Nonetheless, a solid guidance looks promising. Further, higher demand for ventilator and patient monitoring components fuel optimism. Also, expansion in both gross and operating margins is a positive.
Zacks Rank
Currently, Integer Holdings carries a Zacks Rank #3 (Hold).
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which beat the Zacks Consensus Estimate by 6.6%. Fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.
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Integer Holdings (ITGR) Gains 2.4% Post Q4 Earnings Beat
Shares of Integer Holdings Corporation (ITGR - Free Report) have gained 2.4% on Feb 22, following the company's fourth-quarter 2020 results.
The company reported fourth-quarter 2020 adjusted earnings per share (EPS) of 71 cents, which outpaced the Zacks Consensus Estimate of 62 cents by 14.5%. However, the bottom line plunged 43.2% on a year-over-year basis.
For the full-year 2020, the company reported adjusted EPS of $2.77 per share, down 40.8% from 2019.
Revenue Details
Revenues declined 17.4% year over year to $268.9 million on a reported basis. Nonetheless, the top line beat the Zacks Consensus Estimate by 2.2%.
The company delivered $1.07 billion, down 14.7% from 2019.
Segmental Analysis
Integer Holdings operates through two segments — Medical Sales and Non-Medical Sales.
Medical Sales
At the segment, reported revenues were $260.6 million, down 16.4% year over year. Revenues declined 16.7% from the prior-year quarter on an organic basis.
Medical Sales has three sub-segments — Advanced Surgical, Orthopedics and Portable Medical (AS&O); Cardio & Vascular; and Cardiac & Neuromodulation.
Advanced Surgical, Orthopedics and Portable Medical
Integer Holdings’ Advanced Surgical, Orthopedics & Portable Medical segment has been divested to Viant. Consequently, revenues at the segment comprise net sales from acquirer Viant under supply agreements associated with the divestiture.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings Corporation price-consensus-eps-surprise-chart | Integer Holdings Corporation Quote
Revenues amounted to $29.7 million, down 12.2% year over year and 12.2% on an organic basis. Per management, the downside was due to the impact of the COVID-19 pandemic and a blend of customers’ responses.
Cardio & Vascular
Revenues at the segment totaled $137.1 million, down 13.5% from the prior-year quarter and 14.3% organically. Per management, this can be attributed to the impact of the pandemic and customers’ responses throughout nearly all Cardio & Vascular markets.
Cardiac & Neuromodulation
Revenues at this segment totaled $93.8 million, declining 21.3% on both year-over-year and organic basis. This was due to a slump in CRM and Neuromodulation (corresponding to the impact of the pandemic and a blend of customers’ responses).
Non-Medical Sales
Reported revenues at the segment totaled $8.3 million, down 40.6% on both year-over-year and organic basis.
Margin Analysis
Integer Holdings generated a gross profit of $73.2 million in the fourth quarter, down 3.7% year over year. As a percentage of revenues, gross margin in the reported quarter expanded 390 basis points (bps) to 27.2%.
Selling, general and administrative expenses (SG&A) were $3.5 million, down 6.9% year over year.
Research, development and engineering costs were $10.6 million in the quarter, down 10.3% year over year.
Total operating income amounted to $27.6 million, which improved 21.8% year over year. Operating margin in the quarter under review was 10.3%, up 340 bps year over year.
2021 Guidance
For first-quarter 2021, the company projects sales to be $280-$290 million. Adjusted operating income is expected between $42 million and $47 million.
For the full-year 2021, the company projects sales to be $1.16-$1.20 billion. The Zacks Consensus Estimate for the same is pegged at $1.18 billion.
Adjusted EPS is anticipated to be $3.40-$3.90. The consensus mark stands at $3.60 per share.
Adjusted operating income is projected to be $170-$190 million.
Summing Up
Integer Holdings exited the fourth quarter on a strong note, wherein both earnings and revenues beat their respective Zacks Consensus Estimates. However, the company witnessed weak performance across its segments in the quarter under review.
Nonetheless, a solid guidance looks promising. Further, higher demand for ventilator and patient monitoring components fuel optimism. Also, expansion in both gross and operating margins is a positive.
Zacks Rank
Currently, Integer Holdings carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.
Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which beat the Zacks Consensus Estimate by 6.6%. Fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.
AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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