Integer Holdings (NYSE:ITGR) today reported third-quarter results that beat The Street on earnings but missed on revenue amid continued supply chain challenges.
The Plano, Texas–based medtech contract manufacturing giant had already warned investors early this month. It reported that deteriorating delivery performance and missed commitments from three suppliers would impact Q3 sales by $15 million. In addition, Integer reduced its full-year guidance.
With the supply chain difficulties already priced in, ITGR shares were slightly up this morning, trading at $60.33 apiece. (Integer’s stock is down more than 1% over the past month.) MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 1%.
Integer earned $16 million, or 48¢ per share, off $343 million in sales for the quarter ended Sept. 30, 2022, with the bottom-line down 27% and the top-line up 12% compared with Q3 2021.
Adjusted to exclude on-time items, Integer saw an EPS of 95¢. The amount was 6¢ ahead of The Street, where analysts were looking for earnings per share of 89¢ on sales of $345.13 million.
More on Integer’s Q3 report
“Integer’s third quarter 2022 sales and profit results were in line with our preliminary view shared on Oct. 5, 2022. In this challenging supply chain environment, we are further intensifying our supply chain management to meet strong customer demand. We expect the 2022 sales impact from supplier delivery delays to primarily be recovered in 2023,” Integer CEO Joseph Dziedzic said in a news release.
Integer earlier this month reduced its full-year guidance to $3.57 to $3.97 adjusted EPS off $1.350 billion to $1.380 billion in sales — down from the previous guidance of $4.20 to $4.50 adjusted EPS off $1.370 billion to $1.395 billion in sales.
“In 2023, we expect above-market revenue growth of 7% to 9% with margin expansion,” Dziedzic said. “The fundamentals of our growth strategy remain strong, and we are confident that we are well positioned to capitalize on an environment where customers are focused on consolidating their supplier base with trusted partners.”