Leading medical device outsource manufacturer Integer Holdings Corporation (ITGR - Free Report) announced that it has completed an amendment to its senior secured credit facilities to lower the interest rate on its Term B Loan Facility.
The price performance of the stock has been favorable in the last three months. Integer registered a stable return of 33.17%, outpacing the Zacks classified Medical - Instruments sub-industry’s gain of almost 8.48%.
Meanwhile, the estimate revision trend for the stock has been mixed as one estimate moved north and another moved south in the last two months. Notably, the current year estimate for the stock stands at $2.61 per share.
How Will the Amendment Help?
Coming back to the news, we believe the amendment is a smart move on the part of the company. It has reduced the company’s applicable interest rate margin of its Term B Loan Facility by 75 basis points at one go, from LIBOR + 4.25% to LIBOR + 3.50%. Management expects the reduction in interest rate to trim annual interest expense by approximately $7 million. This would create more operating cash flow and financial flexibility for the company.
In the recently reported fourth quarter of 2016, cash flows provided by operating activities were $34 million. As of Dec 31, 2016, the company had cash and cash equivalents of $52.1 million.
Integer Holdings is a medical device outsource manufacturer. The company serves the cardiac, neuromodulation, orthopedics, vascular, advanced surgical and power solutions markets. It also develops batteries for high-end niche applications in energy, military and environmental markets.
Zacks Rank & Key Picks
Currently, Integer Holdings has a Zacks Rank #4 (Sell).
Better-ranked stocks in the broader medical sector include Inogen, Inc. (INGN - Free Report) , Bovie Medical Corporation (BVX - Free Report) and ResMed, Inc. (RMD - Free Report) . Inogen sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained 83.2% in the last one year in comparison to the S&P 500’s return of 15.9%. The company has a stellar four-quarter average positive earnings surprise of over 49.08%.
Bovie Medical surged 65% in the last one year in comparison to the S&P 500. It delivered a four-quarter average positive earnings surprise of 28.7%.
ResMed gained over 27.5% in the past one year, better than the S&P 500 mark. It also has a four-quarter average positive earnings surprise of 0.31%.
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