Integer Holdings Corporation ITGR is well poised for growth on portfolio management, strong presence in the broader MedTech space and improving Non-Medical sales.
The stock currently carries a Zacks Rank #2 (Buy).
Shares of Integer Holdings have gained 1.5%, against the industry’s decline of 1.4% on a month-to-date basis. Meanwhile, the S&P 500 Index rallied 0.4% in the same timeframe.
What’s Favoring the Stock?
Integer Holdings has introduced a new approach to drive sales and profit growth, following a comprehensive strategic review of the business. The company’s new strategy has two overarching themes that are focused on portfolio management and operational excellence. This will help the company to realize its vision of enhancing patient lives.
On the basis of consistent efforts to simplify operations, Integer Holdings has been exhibiting profitability since the last couple of quarters and we expect the momentum to continue in the near term.
Management also announced that the company has been witnessing revenue growth faster than markets and profit growth that is twice the rate of revenue growth.
Further, the company continues to gain from strong presence in the broader MedTech space. This in turn will help in accelerating the company’s overall performance.
Moreover, the company has been exhibiting improvement in Non-Medical sales and anticipates to witness growth in the second half of 2019 primarily on the back of new customer growth initiatives, product launches and increased military demand.
Additionally, an upbeat outlook for 2019 and expansion in operating margin buoy optimism on the stock.
Notably, for 2019, adjusted earnings are expected in the range of $4.25-$4.45 (up from the previously guided range of $4.15-$4.35 per share), indicating an improvement of 12-17% from the previous year.
For 2019, Integer Holdings anticipates reported revenues between $1.27 billion and $1.28 billion, suggesting growth of 4-5% from the year-ago reported quarter. On an adjusted basis, the company expects revenues in the same band, indicating an improvement of 4-6% from the previous year.
Which Way are Estimates Headed?
For 2019, the Zacks Consensus Estimate for revenues is pegged at $1.27 billion, indicating a decline of 2.6% from the year-ago quarter. The same for earnings stands at $4.40, suggesting growth of 15.8% from the year-ago reported figure.
Other Key Picks
Some other top-ranked stocks from the broader medical space are Baxter International Inc. BAX, Amedisys, Inc. AMED and CONMED Corporation CNMD, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Baxter has a long-term earnings growth rate of 12.8%.
Amedisys has a long-term earnings growth rate of 16.3%.
CONMED has a long-term earnings growth rate 14.9%.
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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
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