Integer Holdings (NYSE:ITGR) today reported fourth-quarter results that beat the consensus forecast on Wall Street, projecting an even better 2022 as it works through the effects of the COVID-19 omicron variant surge.
The Plano, Texas–based medical device contract manufacturing giant earned $23.8 million, or 71¢ per share, off $313.0 million in sales for the quarter ended Dec. 31, 2021, for a bottom-line gain of 54% and sales growth of 16% compared with Q4 2020.
Adjusted to exclude one-time items, earnings per share were 99¢, 13¢ ahead of The Street, where analysts were looking EPS of 86¢ on sales of $307.7 million.
Integer also closed on its $220 million acquisition of Oscor in early December.
“Integer delivered strong year-over-year financial results in the fourth quarter and full-year 2021 despite a challenging labor and supply chain environment,” Integer CEO Joseph Dziedzic said in a news release. “Looking forward to 2022, we expect our year-over-year sales and profit growth to increase throughout the year. The growth will come from the execution of our strategy as well as the integration of Oscor, which is well underway.”
The company’s Cardio & Vascular and Cardiac & Neuromodulation product lines each saw 19% sales growth in Q4, despite facing end-market demand fluctuations and supply chain constraints. Advanced Surgical, Orthopedics & Portable Medical was down 10% with reduced demand for COVID-related ventilator and patient monitoring components. Electrochem sales were up 34% amid continued energy market recovery.
Integer officials expect the omicron surge’s impact on labor and the supply chain will impact Q1 2022 results, with improvement in Q2 and a solid second half of the year amid an improved labor and supply chain situation and new product introductions. As a result, the company expects annual sales to grow 10–12% to $1.340–1.365 billion this year, with adjusted EPS up 7–14% to $4.35–4.65.
Investors reacted by sending ITGR shares down 0.6% to $85.03 apiece in morning trading today. Medical Design & Outsourcing and MassDevice’s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down 1.7%.