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 (ITGR) Misses on Q2 Earnings, Synergy View Up
Read MoreHide Full Article
Shares of Integer Holdings Corporation (ITGR - Free Report) , formerly known as Greatbatch Inc. (GB), plunged 30.2% to close at $22.21 on Jul 29, following the company’s second quarter of 2016 results. However, shares recovered 3.2% to close at $22.91 on Aug 1, after the company’s synergy expectations impressed the investors.
Integer reported adjusted earnings of 56 cents per share in the second quarter of 2016, which slumped 23.3% from the year-ago quarter and also missed the Zacks Consensus Estimate of 74 cents.
During the quarter, Greatbatch Inc. (GB) renamed it as Integer Holdings and started trading under the symbol “ITGR”. Notably, the company completed Nuvectra spin-off on Mar 14. The second quarter of 2016 results excludes Nuvectra figures but includes the results from Lake Region Medical (acquired in Oct 2015).
After adjusting for these effects (comparable basis), adjusted earnings declined 38% from the year-ago quarter.
Revenues surged 8% year over year to $348.4 million. On a comparable basis, sales declined 8% year over year in the reported quarter.
Post the Lake Region Medical acquisition, Integer realigned its product line into four categories – (1) Advanced Surgical, Orthopedics and Portable Medical, (2) Cardio and Vascular, (3) Cardiac/Neuromodulation, and (4) Electrochem.
Advanced Surgical, Orthopedics, and Portable Medical includes the legacy Greatbatch Orthopedics and Portable Medical product line in addition to the legacy Lake Region Medical Advanced Surgical product line. On a comparable basis and at cc, sales decreased 4% to $104.3 million owing to a backlog in sales to one specific Portable Medical customer.
Cardio and Vascular includes the Vascular product line and the Lake Region Medical Cardio and Vascular sales. On a comparable basis and at cc, sales were flat at $144.2 million. The decline can be primarily attributed to inventory adjustments at a specific customer.
Cardiac/Neuromodulation products include the legacy Greatbatch Cardiac/Neuromodulation segment and QiG in addition to the legacy Lake Region Medical Cardiac/Neuromodulation segment. On a comparable basis and at cc, sales declined 16% to $91.6 million primarily due to lower orders and contractual price reductions partially counterbalanced by higher neuromodulation sales growth.
Electrochem includes the legacy Greatbatch Energy, Military and Environmental product lines. On a comparable basis and at cc, sales plunged 41% to $9.8 million, primarily due to the continued impact of the slowdown in the energy markets, which has caused customers to reduce drilling, pipeline inspection and exploration volumes.
Adjusted EBITDA margin (on a comparable basis) contracted 140 bps to 19.8% in the reported quarter.
Guidance
Integer expects revenues for the remainder of 2016 to be in the range of $350 million to $360 million per quarter, essentially flat to last year and an increase of approximately 4% compared to the average quarterly revenues for the first half of 2016.
Revenues are predicted to be in the range of $1.375 billion to $1.395 billion on an adjusted comparable basis. Adjusted earnings is expected to be in the range of $2.60--$2.75 per share for the full-year 2016.
Adjusted EBITDA is likely to be in the range of $295 million -- $305 million. For the full-year, management expects to achieve approximately $30 million in synergies, which is better than $25 million annual synergy target.
Integer expects to significantly exceed its $60 million annual run rate synergy target for 2018.
Zacks Rank & Key Picks
Currently, Integer carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the industry include Cepheid and Masimo Corp. (MASI - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Integer (ITGR) Misses on Q2 Earnings, Synergy View Up
Shares of Integer Holdings Corporation (ITGR - Free Report) , formerly known as Greatbatch Inc. (GB), plunged 30.2% to close at $22.21 on Jul 29, following the company’s second quarter of 2016 results. However, shares recovered 3.2% to close at $22.91 on Aug 1, after the company’s synergy expectations impressed the investors.
Integer reported adjusted earnings of 56 cents per share in the second quarter of 2016, which slumped 23.3% from the year-ago quarter and also missed the Zacks Consensus Estimate of 74 cents.
During the quarter, Greatbatch Inc. (GB) renamed it as Integer Holdings and started trading under the symbol “ITGR”. Notably, the company completed Nuvectra spin-off on Mar 14. The second quarter of 2016 results excludes Nuvectra figures but includes the results from Lake Region Medical (acquired in Oct 2015).
After adjusting for these effects (comparable basis), adjusted earnings declined 38% from the year-ago quarter.
Revenues surged 8% year over year to $348.4 million. On a comparable basis, sales declined 8% year over year in the reported quarter.
Quarter Details
Post the Lake Region Medical acquisition, Integer realigned its product line into four categories – (1) Advanced Surgical, Orthopedics and Portable Medical, (2) Cardio and Vascular, (3) Cardiac/Neuromodulation, and (4) Electrochem.
Advanced Surgical, Orthopedics, and Portable Medical includes the legacy Greatbatch Orthopedics and Portable Medical product line in addition to the legacy Lake Region Medical Advanced Surgical product line. On a comparable basis and at cc, sales decreased 4% to $104.3 million owing to a backlog in sales to one specific Portable Medical customer.
Cardio and Vascular includes the Vascular product line and the Lake Region Medical Cardio and Vascular sales. On a comparable basis and at cc, sales were flat at $144.2 million. The decline can be primarily attributed to inventory adjustments at a specific customer.
Cardiac/Neuromodulation products include the legacy Greatbatch Cardiac/Neuromodulation segment and QiG in addition to the legacy Lake Region Medical Cardiac/Neuromodulation segment. On a comparable basis and at cc, sales declined 16% to $91.6 million primarily due to lower orders and contractual price reductions partially counterbalanced by higher neuromodulation sales growth.
INTEGER HOLDNGS Price, Consensus and EPS Surprise
INTEGER HOLDNGS Price, Consensus and EPS Surprise | INTEGER HOLDNGS Quote
Electrochem includes the legacy Greatbatch Energy, Military and Environmental product lines. On a comparable basis and at cc, sales plunged 41% to $9.8 million, primarily due to the continued impact of the slowdown in the energy markets, which has caused customers to reduce drilling, pipeline inspection and exploration volumes.
Adjusted EBITDA margin (on a comparable basis) contracted 140 bps to 19.8% in the reported quarter.
Guidance
Integer expects revenues for the remainder of 2016 to be in the range of $350 million to $360 million per quarter, essentially flat to last year and an increase of approximately 4% compared to the average quarterly revenues for the first half of 2016.
Revenues are predicted to be in the range of $1.375 billion to $1.395 billion on an adjusted comparable basis. Adjusted earnings is expected to be in the range of $2.60--$2.75 per share for the full-year 2016.
Adjusted EBITDA is likely to be in the range of $295 million -- $305 million. For the full-year, management expects to achieve approximately $30 million in synergies, which is better than $25 million annual synergy target.
Integer expects to significantly exceed its $60 million annual run rate synergy target for 2018.
Zacks Rank & Key Picks
Currently, Integer carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the industry include Cepheid and Masimo Corp. (MASI - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>