Integer
(NYSE: ITGR)
stock declined by 10% today despite posting Street-beating first-quarter earnings.
Investors were likely reacting to the medtech contract manufacturing giant’s full-year guidance, which was less than the analyst consensus.
Plano, Texas–based Integer earned $20.5 million, or 59¢ per share, off of $414.8 million in sales for the quarter ended March 29, 2024. Compared to Q1 2023, net income grew 57% and sales grew 9.5%.
Adjusted to exclude one-time items, Integer’s EPS was $1.14. The result was 3¢ ahead of The Street, where analysts on average expected EPS of $1.11 and revenue of $412.8 million.
“Integer started the year strong with first quarter 2024 sales growing 10% versus a year ago and adjusted operating income growing 26%, more than two and a half times the rate of sales growth,” Integer CEO Joseph Dziedzic said in a news release.
Integer said Cardio & Vascular business sales increased 16% due to “continued strong demand across all markets, new product ramps in electrophysiology and structural heart, and the InNeuroCo and Pulse acquisitions.”
Cardiac Rhythm Management & Neuromodulation sales grew 8%. Integer noted “strong growth in emerging Neuromodulation customers with PMA (pre-market approval) products and strong demand in Cardiac Rhythm Management.”
Integer maintained its full-year guidance for sales growth of 9-11% and adjusted operating income growth of 13-20%.
That would put 2024 sales in the range of $1.735 billion to $1.770 billion and operating income in the range of $202 million to $220 million.
The midpoint of that revenue forecast is short of the $1.76 billion that Wall Street analysts projected.
Those analysts are also expecting full-year adjusted EPS of $5.31. Integer is forecasting adjusted EPS of $5.01 to $5.43 for 2024.
