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Integer Holdings' (ITGR) 2019 View Strong Despite Rivalry

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On Feb 22, we issued an updated research report on Integer Holdings Corporation ITGR. A solid view for 2019 is working in favor of  the company despite stiff rivalry in the MedTech space.

 

The stock currently carries a Zacks Rank #3 (Hold).

 

What’s Favoring the Stock?

 

Along with a solid fourth-quarter show, Integer Holdings issued a strong 2019 view.

 

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

 

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

 

Additionally, Integer Holdings has a stable footing in the cardiac, neuromodulation, orthopedics, vascular and advanced surgical markets.

 

In the recently-reported fourth quarter, Integer Holdings focused its sales efforts on increasing market penetration in the higher growth Cardio & Vascular, Neuromodulation and Non-Medical Electrochem markets. The company is also making strategic initiatives to maintain its leadership position in the cardiac rhythm management market.

 

Shares Up

 

Over the past year, shares of Integer Holdings have rallied 70% compared with the S&P 500 index’s 0.5% gain.

 

Deterrents

 

Integer Holdings earns a major portion of revenues from cardiac, neuromodulation, orthopedics, vascular, advanced surgical and power solutions markets. The company faces stiff competition in the MedTech space from players like Medtronic MDT, Boston Scientific, Stryker SYK, Smith & Nephew and ConvaTec.

 

Key Pick

 

A better-ranked stock from the Medical Instruments space is Wright Medical Group N.V. WMGI.

 

Wright Medical’s long-term earnings growth rate is projected at 11%. The stock carries a Zacks Rank #2 (Buy). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
 
Stryker Corporation (SYK) : Free Stock Analysis Report
 
Wright Medical Group N.V. (WMGI) : Free Stock Analysis Report
 
Medtronic PLC (MDT) : Free Stock Analysis Report
 
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