Integer Q1 sales rise 0.5%, beat analyst estimates

Overview

• US medical device contract manufacturer's Q1 sales rose 0.5%, beating analyst expectations

• Adjusted EPS for Q1 beat consensus; adjusted net income missed analyst estimates

• Company initiated strategic review to consider sale, merger, or business combination

Outlook

• Integer sees 2026 sales between $1.805 bln and $1.835 bln, down 3% to 1% from prior yr

• Company expects 2026 adjusted EPS of $5.83 to $6.40, down 9% to flat from prior yr

• Integer expects to return to 200bps above-market organic sales growth in 2027

Result Drivers

• PRODUCT LAUNCH HEADWINDS - Co said Q1 results primarily reflected previously communicated headwinds associated with three new products

• PORTABLE MEDICAL EXIT - Decline in Other Markets sales was mainly driven by a decrease in Portable Medical from the multi-year exit announced in 2022

• CUSTOMER FORECASTS AND MARKET DYNAMICS - Co said recent customer forecast updates and market dynamics led to further risk adjustment of its outlook

Company press release: ID:nGNXZ6NjM

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for Integer Holdings Corp is $93.50, about 11.7% above its April 29 closing price of $83.67

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

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