We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (“EPS”) of $1.05 in the third quarter of 2021, which skyrocketed 110% year over year. The figure surpassed the Zacks Consensus Estimate by 9.4%.
The adjustments include expenses related to amortization of intangibles and certain legal expenses, among others.
GAAP EPS for the quarter was 66 cents a share, reflecting a decline of 28.3% year over year.
Revenues in Detail
Integer Holdings registered revenues of $305.6 million in the third quarter, up 29.5% year over year. The figure surpassed the Zacks Consensus Estimate by 0.3%.
Organically, revenues increased 29.5%.
Robust performances by both segments of the company drove the top line.
Segmental Analysis
Integer Holdings operates through two segments — Medical Sales and Non-Medical Sales.
Medical Sales reported revenues of $296.1 million, up 30.1% year over year both on a reported and an organic basis.
Medical Sales has three product lines — Advanced Surgical, Orthopedics and Portable Medical (AS&O); Cardio & Vascular; and Cardiac & Neuromodulation.
Integer Holdings’ AS&O business has been divested to Viant. Consequently, revenues at the segment comprise net sales from the acquirer, Viant, under supply agreements associated with the divestiture and portable medical sales.
Revenues amounted to $28.7 million, down 4.8% year over year both on a reported and an organic basis. Per management, the downside was due to a decline in portable medical ventilator and patient monitoring components sales.
Revenues at the Cardio & Vascular business totaled $160.9 million, up 29.1% from the prior-year quarter on a reported basis and up 29% organically. The business recorded strong sales increases across all cardio & vascular markets on the back of robust market demand, especially in the peripheral vascular and electrophysiology markets.
Revenues at the Cardiac & Neuromodulation business were $106.5 million, up 46.1% year over year, both on a reported and an organic basis. Sales in this arm increased across all markets on the back of customer demand. Sales in both the cardiac rhythm management and neuromodulation markets increased in high double digits.
Revenues at the Non-Medical Sales segment totaled $9.5 million, up 14.5% year over year, both on a reported and an organic basis. Sales at the Electrochem product line, a part of the Non-Medical segment, improved 14% on the back of the continued recovery of the energy market.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings generated gross profit of $81.9 million in the third quarter, up 41.3% year over year. Gross margin in the reported quarter expanded 224 basis points (bps) to 26.8%.
Selling, general and administrative expenses were $34.3 million, skyrocketing 849.5% year over year. Research, development and engineering costs were $12.1 million in the quarter, up 1.3% year over year. Adjusted operating expenses of $46.3 million increased 198.8% year over year.
Adjusted operating profit totaled $35.6 million, reflecting a 16.2% fall from the prior-year quarter. Adjusted operating margin in the third quarter contracted a huge 635 bps to 11.6%.
Financial Position
Integer Holdings exited the third quarter of 2021 with cash and cash equivalents of $25.5 million compared with $30.6 million at the end of the second quarter. Total debt (including current portion) at the end of third-quarter 2021 was $630.7 million compared with $668.7 million at the end of the second quarter.
Cumulative net cash flow from operating activities at the end of the third quarter was $117.4 million compared with $110.2 million a year ago.
2021 Guidance
For 2021, Integer Holdings expects revenues to be in the range of $1,205-$1,220 million, reflecting an improvement of 12-14% from the 2020 reported figure. This is narrowed from the previously issued guidance of $1,200-$1,220 million, which also indicated an increase of 12-14%. The Zacks Consensus Estimate for the same is pegged at $1.22 billion.
The company expects full-year adjusted EPS in the band of $3.90-$4.15, indicating an uptick of 41-50% from the 2020 reported figure (up from the previous expectation of $3.66-$4.03, which called for a 32-46% increase from the year-ago reported figure). The Zacks Consensus Estimate for the same is pegged at $3.98.
For fourth-quarter 2021, the company projects similar strong year-over-year sales growth as well.
Our Take
Integer Holdings exited the third quarter with better-than-expected results. Robust segmental performances, along with strength in the majority of the product lines, are impressive. Continued business recovery, despite the U.S. labor constraints and global supply chain disruptions, is encouraging. Expansion of gross margin also bodes well for the stock. A raised adjusted EPS outlook for the year and management’s expectations of a strong sales growth in the fourth quarter of 2021 raise our optimism.
Integer Holdings continued to witness weak performance across its AS&O product line in the quarter under review. Contraction of adjusted operating margin also does not bode well.
Zacks Rank and Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) , and AngioDynamics, Inc. (ANGO - Free Report) .
West Pharmaceutical, carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted EPS of $2.06, which beat the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the consensus mark by 3.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2.
AngioDynamics reported first-quarter fiscal 2022 adjusted loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%. It currently sports a Zacks Rank #1.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Integer Holdings (ITGR) Beats on Q3 Earnings, Ups 2021 EPS View
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (“EPS”) of $1.05 in the third quarter of 2021, which skyrocketed 110% year over year. The figure surpassed the Zacks Consensus Estimate by 9.4%.
The adjustments include expenses related to amortization of intangibles and certain legal expenses, among others.
GAAP EPS for the quarter was 66 cents a share, reflecting a decline of 28.3% year over year.
Revenues in Detail
Integer Holdings registered revenues of $305.6 million in the third quarter, up 29.5% year over year. The figure surpassed the Zacks Consensus Estimate by 0.3%.
Organically, revenues increased 29.5%.
Robust performances by both segments of the company drove the top line.
Segmental Analysis
Integer Holdings operates through two segments — Medical Sales and Non-Medical Sales.
Medical Sales reported revenues of $296.1 million, up 30.1% year over year both on a reported and an organic basis.
Medical Sales has three product lines — Advanced Surgical, Orthopedics and Portable Medical (AS&O); Cardio & Vascular; and Cardiac & Neuromodulation.
Integer Holdings’ AS&O business has been divested to Viant. Consequently, revenues at the segment comprise net sales from the acquirer, Viant, under supply agreements associated with the divestiture and portable medical sales.
Revenues amounted to $28.7 million, down 4.8% year over year both on a reported and an organic basis. Per management, the downside was due to a decline in portable medical ventilator and patient monitoring components sales.
Revenues at the Cardio & Vascular business totaled $160.9 million, up 29.1% from the prior-year quarter on a reported basis and up 29% organically. The business recorded strong sales increases across all cardio & vascular markets on the back of robust market demand, especially in the peripheral vascular and electrophysiology markets.
Revenues at the Cardiac & Neuromodulation business were $106.5 million, up 46.1% year over year, both on a reported and an organic basis. Sales in this arm increased across all markets on the back of customer demand. Sales in both the cardiac rhythm management and neuromodulation markets increased in high double digits.
Revenues at the Non-Medical Sales segment totaled $9.5 million, up 14.5% year over year, both on a reported and an organic basis. Sales at the Electrochem product line, a part of the Non-Medical segment, improved 14% on the back of the continued recovery of the energy market.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings Corporation price-consensus-eps-surprise-chart | Integer Holdings Corporation Quote
Margin Analysis
Integer Holdings generated gross profit of $81.9 million in the third quarter, up 41.3% year over year. Gross margin in the reported quarter expanded 224 basis points (bps) to 26.8%.
Selling, general and administrative expenses were $34.3 million, skyrocketing 849.5% year over year. Research, development and engineering costs were $12.1 million in the quarter, up 1.3% year over year. Adjusted operating expenses of $46.3 million increased 198.8% year over year.
Adjusted operating profit totaled $35.6 million, reflecting a 16.2% fall from the prior-year quarter. Adjusted operating margin in the third quarter contracted a huge 635 bps to 11.6%.
Financial Position
Integer Holdings exited the third quarter of 2021 with cash and cash equivalents of $25.5 million compared with $30.6 million at the end of the second quarter. Total debt (including current portion) at the end of third-quarter 2021 was $630.7 million compared with $668.7 million at the end of the second quarter.
Cumulative net cash flow from operating activities at the end of the third quarter was $117.4 million compared with $110.2 million a year ago.
2021 Guidance
For 2021, Integer Holdings expects revenues to be in the range of $1,205-$1,220 million, reflecting an improvement of 12-14% from the 2020 reported figure. This is narrowed from the previously issued guidance of $1,200-$1,220 million, which also indicated an increase of 12-14%. The Zacks Consensus Estimate for the same is pegged at $1.22 billion.
The company expects full-year adjusted EPS in the band of $3.90-$4.15, indicating an uptick of 41-50% from the 2020 reported figure (up from the previous expectation of $3.66-$4.03, which called for a 32-46% increase from the year-ago reported figure). The Zacks Consensus Estimate for the same is pegged at $3.98.
For fourth-quarter 2021, the company projects similar strong year-over-year sales growth as well.
Our Take
Integer Holdings exited the third quarter with better-than-expected results. Robust segmental performances, along with strength in the majority of the product lines, are impressive. Continued business recovery, despite the U.S. labor constraints and global supply chain disruptions, is encouraging. Expansion of gross margin also bodes well for the stock. A raised adjusted EPS outlook for the year and management’s expectations of a strong sales growth in the fourth quarter of 2021 raise our optimism.
Integer Holdings continued to witness weak performance across its AS&O product line in the quarter under review. Contraction of adjusted operating margin also does not bode well.
Zacks Rank and Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) , and AngioDynamics, Inc. (ANGO - Free Report) .
West Pharmaceutical, carrying a Zacks Rank #2 (Buy), reported third-quarter 2021 adjusted EPS of $2.06, which beat the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the consensus mark by 3.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2.
AngioDynamics reported first-quarter fiscal 2022 adjusted loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%. It currently sports a Zacks Rank #1.