Integer Holdings (NYSE:ITGR) posted first-quarter results today that fell short of the consensus forecast on Wall Street and adjusted its outlook for the rest of the year to include its recent acquisition of Aran Biomedical.
The Plano, Texas–based medical device contract manufacturing giant reported profits of $11 million, or $0.34 per diluted share, on sales of $311 million for the three months ended April 1, 2022, for a bottom-line decrease of 47% and sales growth of 7% compared with Q1 2021.
Adjusted to exclude one-time items, earnings per share were $0.78, $0.07 short of the Street, where analysts were looking for EPS of $0.85 on sales of $314.57 million.
The company cited high absenteeism from COVID-19 in January and supply chain constraints as challenges in the quarter. The financial results were “consistent with our expectations,” Integer President and CEO Joseph Dziedzic said in a news release.
“Our dedicated associates remain focused on delivering products for our customers and the patients they serve, despite the challenging labor and supply chain environment,” he said “Our first quarter progress on direct labor staffing and supply chain position us well for growth. We expect double-digit sales growth for the rest of the year, beginning in the second quarter, as well as gross margin improvement through the remainder of 2022.”
Integer said it expects to log adjusted EPS of $4.32 to $4.62 this year, down from prior guidance of $4.35 to $4.65, and increased its top-line outlook to a range of $1.356 billion to $1.381 billion (up 11–13% from 2021), compared with a range of $1.340 billion to $1.365 billion previously.
Shares of ITGR closed the day without significant change in price, roughly mirroring the MedTech 100 Index, which includes stocks of the world’s largest medical device companies.
