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Here's Why You Should Invest in Integer Holdings (ITGR) Stock

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Integer Holdings Corporation (ITGR - Free Report) has been gaining investor confidence on continued impressive performance. In a year’s time, the stock has rallied 49.8%, outperforming the industry’s 9.4% growth and the S&P 500’s 4.4% gain.

Moreover, the company has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 8%. Notably, this trend of consecutive beats underlines its operating efficiency.

Integer Holdings’ strong focus on portfolio management and operational excellence is an added positive. It is also likely to gain from the Cardio & Vascular, Neuromodulation and Non-Medical Electrochem markets.

With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive investment pick for investors right now.

What’s Working in Favor?

Solid Quarterly Results

Integer Holdings reported fourth-quarter 2018 adjusted earnings of $1.04 per share, which surpassed the Zacks Consensus Estimate of 92 cents. The bottom line also increased 8.3% on a year-over-year basis. Meanwhile, revenues decreased 22.4% year over year to $303 million on a reported basis but outshined the Zacks Consensus Estimate of $298 million.

For 2019, adjusted earnings are expected within $4.05-$4.25 per share, indicating a 7-12% increase from the previous year. Integer Holdings expects earnings per share in the $2.77-$2.97 band on a reported basis, mirroring 7-12% growth on a year-over-year basis.

Revenues for 2019 is anticipated between $1.26 billion and $1.28 billion, reflecting 4-5% growth year over year. On an adjusted basis, the company expects revenues in the same band, mirroring a 4-6% improvement from the previous year. Adjusted income from operations is anticipated between $141 million and $275 million, showing a year-over-year rise of 8-13%.

Operational Excellence

As a result of continued efforts to streamline operations, Integer Holdings have been registering strong profits since the past couple of quarters.

At the end of fourth-quarter 2018, the company reported total operating income of $39.7 million, up 32.9% year over year. Adjusted income from operations totaled $25.3 million, up 55.6% year over year. Adjusted operating margin is 8.4%, up 300 bps year over year.

Furthermore, management at Integer Holdings announced that the company has been witnessing revenue growth faster than markets and profit growth, which is twice the rate of revenue growth.

Which Way Are Estimates Treading?

The Zacks Consensus Estimate for first-quarter 2019 earnings is pegged at 80 cents, reflecting a 31.2% improvement year over year. The same for revenues stands at $304.1 million.

Bottom Line

Integer Holdings seems to be well-positioned for growth backed by a strong international presence and significant acquisitions.

Want More From the MedTech Industry?

A few better-ranked stocks from the MedTech space are ABIOMED, Inc. , IDEXX Laboratories, Inc. (IDXX - Free Report) and Wright Medical Group N.V. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ABIOMED’s long-term expected earnings growth rate is projected at 27.7%.

IDEXX Laboratories delivered a positive earnings surprise in each of the trailing four quarters, the average being 7.2%.

Wright Medical Group has a long-term earnings growth rate of 11.3%.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

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