Medtech contract manufacturing giant Integer
(NYSE:ITGR)
saw its stock rise more than 7% today on Street-busting second-quarter results.
Plano, Texas–based Integer earned nearly $24 million, or 71¢ per share, off of $400 million in revenue for the quarter that ended June 30, 2023. The bottom line was up 15%, and the top line rose 14% compared with Q2 2022.
Adjusted to exclude on-time items, Integer had earnings per share of $1.14. The result was 14¢ ahead of the expectations of Wall Street analysts, who on average predicted adjusted EPS of $1 on sales of $367.06 million.
“Integer delivered another strong quarter of sales and profit growth supported by an improving supply chain and labor environment,” Joseph Dziedzic, Integer’s president and CEO, said in a news release. “As we continue to see strong customer demand across our product lines, we are increasing our full-year sales outlook to 12% growth at the midpoint, up 400 basis points. Additionally, we are raising our adjusted operating income outlook to 19% growth at midpoint, up 600 basis points. The execution of our product line and operational strategies will drive sustained above-market growth and margin expansion in 2023 and beyond.”
Investors reacted by sending ITGR shares up more than 7% to $93.24 apiece by the close of trading today.
Such positive results from one of the industry’s largest contract manufacturers could provide more evidence that the medical device industry overall is moving past challenges, including operational problems at health provider customers and supply chain difficulties. There is also the higher cost of doing business that companies have generally faced this year.