Integer Holdings Q2 Earnings Miss Estimates, Revenues Up Y/Y

Integer Holdings Corporation ITGR delivered adjusted earnings per share (EPS) of $1.55 in the second quarter of 2025, which improved 19.2% year over year. However, the figure missed the Zacks Consensus Estimate by 1.3%.The adjustments include expenses related to the amortization of intangible assets and restructuring and restructuring-related charges, among others.GAAP EPS for the quarter was $1.04, up 18.2% from the prior-year quarter.ITGR Revenues in DetailInteger Holdings registered revenues of $476.5 million in the second quarter, up 11.4% year over year. The figure topped the Zacks Consensus Estimate by 2.9%.Organically, revenues increased 10.8%.Robust sales from the majority of the product lines drove the company’s top line in the reported period.Integer Holdings Segmental AnalysisInteger Holdings operates through three product lines — Cardio and Vascular (C&V); Cardiac Rhythm Management & Neuromodulation (CRM&N) and Other Markets.During the fourth quarter of 2024, management began referring to ITGR’s Advanced Surgical, Orthopedics & Portable Medical product line as the Other Markets product line. This was aimed at better capturing the evolving nature of the company’s products and ongoing strategic focus. Per management, the name change has no impact on the financial information previously reported.Revenues of the C&V business totaled $286.9 million, up 24% from the prior-year quarter on a reported basis and up 17.6% organically. Strong growth in the segment was driven by organic momentum and recent acquisitions (Precision Coating and VSi Parylene). Electrophysiology remained a key driver, supported by Integer Holdings’ broader role in procedures like pulsed field ablation. This compares to our second-quarter projection of $261.9 million.Revenues of the CRM&N business were $171.9 million, up 2.3% year over year on a reported as well as on an organic basis. The solid year-over-year performance was driven by strong growth in emerging Neuromodulation customers with premarket approval products and normalized CRM growth. This compares to our second-quarter projection of $173.8 million for the product line.Integer Holdings’ Other Markets revenues amounted to $17.6 million, down 37.9% year over year on a reported basis, and down 1.8% on an organic basis. Per management, this resulted from the execution of the planned multi-year Portable Medical exit announced in 2022. This compares to our second-quarter projection of $26.7 million for Other Markets revenues.Integer Holdings Corporation Price, Consensus and EPS Surprise Integer Holdings Corporation price-consensus-eps-surprise-chart | Integer Holdings Corporation QuoteITGR’s Margin AnalysisInteger Holdings generated a gross profit of $129.2 million in the second quarter, up 10% year over year. The gross margin in the reported quarter contracted 30 basis points (bps) to 27.1%. We had projected 28.4% of gross margin for the second quarter.Selling, general and administrative expenses were $52.9 million, up 13.9% year over year. Research, development and engineering costs were $14.2 million in the quarter, down 8.8% year over year. Total operating expenses of $69.8 million increased 11% year over year.Adjusted operating profit totaled $81.3 million, reflecting a 14.7% uptick from the prior-year quarter. Adjusted operating margin in the second quarter expanded 50 bps to 17.1%.Integer Holdings’ Financial PositionInteger Holdings exited the second quarter of 2025 with cash and cash equivalents of $23.1 million compared with $31.7 million at the first-quarter end. Total debt (including the current portion) at the end of second-quarter 2025 was $1.2 billion compared with $1.24 billion at the first-quarter end.Cumulative net cash flow from operating activities at the end of second-quarter 2025 was $75.1 million compared with $70.5 million a year ago.ITGR’s 2025 GuidanceInteger Holdings has updated its financial outlook for 2025.For 2025, the company now expects revenues between $1,850 million and $1,876 million (implying an improvement of 8-9% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $1.87 billion.The company now expects full-year adjusted EPS in the band of $6.25-$6.51 (indicating a rise of 18-23% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $6.33.Our TakeInteger Holdings exited the second quarter of 2025 with mixed results. The strong year-over-year top-line and bottom-line performances were impressive. Strength in the majority of the product lines was encouraging. The expansion of the adjusted operating margin bodes well for the stock.Growth was primarily driven by continued momentum in the C&V segment, fueled by new product ramps, especially in electrophysiology and structural heart. The recent acquisitions of Precision Coating and VSi Parylene expanded Integer Holdings’ capabilities in differentiated and proprietary coatings, positioning the company for deeper integration into customer roadmaps and future product pipelines.However, modest growth in the CRM&N segment and continued decline in the Other Markets segment remain areas to watch.Integer Holdings’ Zacks Rank and Key PicksInteger Holdings currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation BSX, Cardinal Health, Inc. CAH and Cencora, Inc. COR.The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2025 adjusted earnings per share (EPS) is currently pegged at 72 cents. The consensus estimate for revenues is pegged at $4.89 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Boston Scientific has an estimated long-term growth rate of 13.2%. BSX’s earnings yield of 2.8% compares favorably with the industry’s 1.1%.Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03, and the same for revenues is pinned at $60.67 billion.Cardinal Health has an estimated long-term growth rate of 10.9%. CAH’s earnings yield of 5.7% compares favorably with the industry’s 5.5%.Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78, and the same for revenues is pegged at $80.33 billion.Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Cardinal Health, Inc. (CAH): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks