PLANO, Texas - Integer Holdings Corporation (NYSE:ITGR) reported a solid start to the first quarter of 2024, with sales and adjusted EPS figures slightly surpassing analyst expectations. However, the company's stock fell 3% premarket as its full-year revenue outlook came in below the consensus estimate.
For the first quarter ended March 29, 2024, Integer posted sales of $415 million, a 10% increase from $378.8 million in the first quarter of the previous year, and a notch above the consensus estimate of $412.8 million. Adjusted EPS for the quarter was $1.14, beating the analyst estimate by $0.02 and marking a substantial increase from $0.87 in the same period last year.
Joseph Dziedzic, Integer's president and CEO, highlighted the company's strong start, with sales growing 10% YoY and adjusted operating income growing 26%. He reiterated the company's financial outlook for 2024, expecting sales growth of 9% to 11% and adjusted operating income growth of 13% to 20%.
Despite the positive performance in the first quarter, Integer's full-year revenue guidance of $1.73 to $1.77 billion fell short of the consensus estimate of $1.76 billion. The midpoint of the guidance range, $1.75 billion, is below the analyst consensus, prompting a negative market response. The company's EPS guidance for FY2024 is set at $5.01 to $5.43, with the midpoint slightly below the consensus of $5.31.
The company's financial strength was further demonstrated by a 57% increase in GAAP net income to $21 million and a 33% increase in non-GAAP adjusted net income to $39 million compared to the first quarter of the previous year. GAAP operating income rose 15% to $39 million, while non-GAAP adjusted operating income saw a 26% increase to $63 million. Adjusted EBITDA also grew by 22% to $81 million.
The growth in sales was primarily driven by a 16% increase in Cardio & Vascular sales, an 8% rise in Cardiac Rhythm Management & Neuromodulation sales, and a 4% growth in Advanced Surgical, Orthopedics & Portable Medical sales. However, Electrochem sales saw a decrease compared to the first quarter of the previous year.
Dziedzic stated, "Integer started the year strong with first quarter 2024 sales growing 10% versus a year ago and adjusted operating income growing 26%, more than two and a half times the rate of sales growth."
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