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What's in Store for Integer Holdings (ITGR) in Q3 Earnings?

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Integer Holdings Corporation (ITGR - Free Report) is expected to release third-quarter 2018 results on Nov 1. The company expects steady growth in the Cardio & Vascular product line.

Q2 Results at a Glance

Integer posted adjusted earnings of $1.06 per share in the second quarter of 2018, up 43% year over year. Further, earnings beat the Zacks Consensus Estimate of 90 cents.

Revenues rose 12% year over year to $314 million on a reported basis and missed the Zacks Consensus Estimate of $382 million.

On an average, the company delivered a positive earnings surprise of 24% in the trailing four quarters.

Integer Holdings Corporation Price and EPS Surprise

 

Which Way are Estimates Treading?

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $292 million, indicating a year-over-year decline of 19.6%. The consensus estimate for earnings is pegged at 92 cents, reflecting a year-over-year rise of 12.2%.

Let’s delve deeper.

Factors to Consider

Cardio & Vascular product line

In the third quarter, the Cardio & Vascular product line is expected to boost the top line. The upside will be driven by strong revenues in the peripheral vascular, neurovascular and electrophysiology markets.

Catheter revenues in electrophysiology as well as catheter & guidewire revenues in the peripheral vascular and neurovascular markets are expected to be strong in the quarter to be reported.

In the last reported quarter, Cardio & Vascular product line platform witnessed 13% year-over-year sales growth.Integer’s long-term objective in Cardio & Vascular is to continue to deliver double-digit growth on a sustainable basis in the quarter to be reported.

Cardiac & Neuromodulation

Strong prospects in the neuromodulation market are key drivers for long-term growth forCardiac & Neuromodulation product line. Management at Integer announced that the company is focused on accelerating neuromodulation sales through expanding customer base.

In the last reported quarter, revenues in the segment totaled $115.9 million, up 9.2% from the prior-year quarter’s tally. On a comparable organic constant-currency basis as well, revenues increased 9.2%.

We expect strength in Cardiac & Neuromodulation product line in the quarter to be reported as well.

For investors’ notice, Integer expects adjusted earnings per share (EPS) in the range of $3.35-$3.65 for the 2018. This reflects growth of 9-19% year over year. The Zacks Consensus Estimate for 2018 adjusted earnings is currently pegged at $3.57, within the range. Adjusted sales are anticipated between $1.18 billion and $1.20 billion, indicating growth of 4-6%. Meanwhile, the Zacks Consensus Estimate is pegged at $1.24 billion, which is considerably higher than the projected range.

Earnings Whispers

Per our proven quantitative model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. This is not the case here as you will see below.

Earnings ESP:Integer has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank:Integer carries a Zacks Rank #3.

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revision.

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat in their upcoming quarterly results.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +5.56% and a Zacks Rank #1.

Amgen Inc (AMGN - Free Report) has an Earnings ESP of +3.54% and a Zacks Rank #2.

Anthem, Inc has an Earnings ESP of +1.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

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