On Friday, Oppenheimer maintained its Outperform rating on Integer Holdings Corporation (NYSE:ITGR) stock with a steady price target of $135.00. Integer reported second-quarter sales of $436 million, marking a 9.0% year-over-year increase and a 5.2% organic growth.
The recent acquisitions of Pulse and InNeuroCo contributed $15.4 million to the sales figures. The company's EBIT rose by 34% year-over-year to $40.0 million, while net income saw a 30% increase to $31.2 million, compared to the expected $33.1 million and $29.3 million by Oppenheimer and the consensus, respectively.
Earnings per share (EPS) for the quarter came in at $0.88, falling short of both the firm's and consensus estimates of $0.94 and $0.93, respectively. Despite this, Integer Holdings reiterated its full-year 2024 revenue guidance, projecting between $1,735 million and $1,770 million, closely aligning with the firm's and consensus estimates of $1,757 million and $1,758 million.
The company has adjusted its forecast for diluted GAAP EPS to a range of $3.26 to $3.67, slightly down from the previous projection of $3.30 to $3.70. This adjustment reflects the firm's and consensus estimates which were set at $3.54 and $3.88, respectively.
Oppenheimer's continued positive outlook on Integer Holdings is based on several factors including the company's diversified risk-reward profile, its unique core competencies, and an improving profit and loss statement.
Oppenheimer has also adjusted its estimates to reflect the second-quarter results and the company's guidance for the fiscal year 2024, suggesting that sales are expected to increase sequentially throughout the remainder of the fiscal year. The firm's stance remains constructive on Integer Holdings' performance and potential for growth.
In other recent news, Integer Holdings Corporation revealed a robust growth projection for 2024 during its second-quarter earnings call. The company reported a 9% increase in sales and a 20% increase in adjusted operating income for Q2 2024. They also raised their full-year profit outlook, expecting an 18% growth in adjusted operating income on a 10% increase in sales.
Free cash flow is projected to be between $85 million and $105 million for 2024, while net total debt is expected to increase by $60 million to $80 million by the end of 2024.
CEO Joseph Dziedzic highlighted the company's strong visibility in product development, particularly in PFA therapy, and a robust acquisitions pipeline, with $550 million spent in the past 2.5 years, maintaining a debt leverage of 3.2.
Integer Holdings anticipates a 27% increase in sales and a 48% increase in adjusted operating income over the next two years. These recent developments indicate a promising future for the company.
InvestingPro Insights
Integer Holdings Corporation (NYSE:ITGR) has displayed a mixed financial performance recently, with an adjusted market capitalization of $3.88 billion and a P/E ratio that stands at a relatively high 40.76. However, looking at the adjusted P/E ratio for the last twelve months as of Q2 2024, it has decreased to 29.95, suggesting a more favorable valuation when considering near-term earnings growth.
InvestingPro Tips highlight that the company is trading at a low P/E ratio relative to its earnings growth, which can be appealing to value investors. Additionally, Integer Holdings is noted for low price volatility, which may attract investors seeking stability.
In terms of financial health, the company's liquid assets surpass its short-term obligations, and analysts predict Integer will remain profitable this year, having been profitable over the last twelve months. It’s worth noting that the stock does not pay a dividend, which could be a consideration for income-focused investors.
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