Integer Holdings (NYSE:ITGR) yesterday handily topped the consensus earnings expectation and met sales forecasts with its fourth-quarter and full-year results.
The Frisco, Texas-based medical device contract manufacturer posted profits of $54.3 million, or $1.68 per share, on sales of $390.5 million for the three months ended Dec. 29, 2018, for a bottom-line gain of 585.0% on sales growth of 8.6% compared with Q4 2016. Integer said the profit surge was fueled by a $40 million benefit from the tax reforms enacted last year.
Adjusted to exclude the tax impact and other one-time items, earnings per share were 96¢, 17¢ ahead of the average estimate on Wall Street, where analysts were looking for sales of $390.5 million.
Full-year profits were $66.7 million, or $2.09 per share, on sales of $1.46 billion, for a whopping 1,018.6% profit gain on sales growth of 5.4% compared with 2016. Adjusted EPS were $2.81 for the year, 18$ ahead of The Street and its $1.46 billion sales forecast.
“Integer had record sales in the fourth quarter, driven by acceleration in our cardio & vascular and advanced surgical, orthopedics and portable medical product lines, continued strong performance in our non-medical product line and stabilization in our cardiac & neuromodulation product line,” president & CEO Joseph Dziedzic said in prepared remarks. “We have completed a strategic review of the business and are now executing on a clear and focused strategy to accelerate sales and profit growth. Our management team has been aligned to successfully execute on our strategic imperatives as we seek to deliver innovative, cost-effective product solutions to our customers and drive shareholder returns over the long-term.”
Integer said it expects to post adjusted EPS of $3.15 to $3.45 on sales of $1.49 billion to $1.53 billion this year. In a separate filing, the company revealed plans for COO Jeremy Friedman to retire by the end of the year.
ITGR shares jumped 15.9% to $52.58 apiece today in late-morning trading.