Greatbatch Touches a New 52-Week High - Analyst Blog

Shares of Greatbatch, Inc. GB reached a new 52-week high of $50.07 in mid-day trading on Jun 20, eventually closing at $49.94 on the same day. In fact, shares of this Texas-based company have been gaining momentum since it reported strong first-quarter fiscal 2014 (ended Apr 4, 2014) results on Apr 30.

The company's shares have recorded a healthy one-year return of 53.4%. GB has a market cap of $1.24 billion while the average volume of shares traded over the last three months stands at approximately 128.6K.

Impressive first-quarter 2014 results indicating double-digit bottom-line growth, strategic restructuring efforts along with accretive investments in sales and marketing led to the growth trajectory of this medical technology company.

Greatbatch posted adjusted earnings of 54 cents for the first quarter, depicting a rise of 22.7% from 44 cents in the same quarter of 2013 and surpassing the Zacks Consensus Estimate of 50 cents by 8.0%.

Greatbatch's top-line growth reflected strong contribution from the company's sales force, partly negated by the shutdown of its Swiss orthopaedic facility as well as the timing of customer orders. The company's strong and growing portfolio of intellectual property and enhancements to its sales and marketing capabilities resulted in over 20% revenue growth in three of the product lines under Greatbatch Medical.

Greatbatch believes that it will achieve the high end of its 2014 earnings and revenues guidance provided at the beginning of this year. Revenues are guided in the range of $685–$705 million, indicating a 3–6% rise over 2013. The Zacks Consensus Estimate for the same is pegged at $ 705 million.

Greatbatch expects adjusted earnings per share in the band of $2.25–$2.35, demonstrating a 7 to 12% rise over 2013. The current Zacks Consensus Estimate of $2.33 lies within the guided range.

Currently, Greatbatch carries a Zacks Rank #2 (Buy). Other well-performing stocks in the medical products industry include Cardica Inc. CRDC, ICU Medical, Inc. ICUI and NeuroMetrix Inc. NURO. All these stocks carry the same Zacks Rank as Greatbatch.

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