A month has gone by since the last earnings report for Integer (ITGR Quick QuoteITGR - Free Report) . Shares have added about 7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Integer due for a pullback? Before we dive into how investors and analysts have reacted as 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 Holdings Q4 Earnings and Revenues Beat Estimates

Integer Holdings Corporation reported fourth-quarter 2020 adjusted earnings per share 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 earnings per share 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.

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 earnings per share 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.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.