This Analyst Cuts Integer's Price Target Citing Choppy Macro Environment

  • Integer Holdings Corp ITGR said Q3 sales were negatively impacted by approximately $15 million, primarily due to deteriorating delivery performance and missed commitments from three suppliers.
  • Preliminary operating income was hit by lower sales volume and higher manufacturing costs. 
  • Integer forecasts Q3 sales of $342-$344 million versus the consensus of $352.97 million and adjusted EPS of $0.86-$0.99 lower than the consensus of $1.08.
  • For FY22, Integer expects sales of $1.35-$1.38 billion and adjusted EPS of $3.57 to $3.97, down from the prior guidance of 1.37-$1.39 billion and $4.20 - $4.50, respectively.
  • "Also, we continue to raise prices with customers to pass through inflationary costs and expect the year-over-year price to be flat or slightly positive in 2023, versus a typical 1% to 2% reduction," said Joseph Dziedzic, Integer's President & CEO. 
  • KeyBanc believes investors will be surprised by the pre-announcement, given that it raised organic growth guidance on its last earnings call and seemed confident in sequential margin improvement. 
  • The analyst cut the price target from $97 to $84 with an Outperform rating to conservatively reflect a continuation of the current choppy macro environment.
  • Price Action: ITGR shares are down 12.9% at $57.76 on the last check Thursday.
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