What Happened?
Shares of medical technology company Integer Holdings (NYSE:ITGR) jumped 4.2% in the morning session after the company reported better-than-expected fourth-quarter 2025 revenue and earnings, alongside encouraging profit guidance for the upcoming year. The medical device manufacturer's fourth-quarter revenue grew 5% year-over-year to $472.1 million, surpassing Wall Street's estimates. Its adjusted earnings per share (EPS) of $1.76 also beat expectations and marked a 23% increase from the same period in the prior year. Looking ahead, Integer provided an adjusted EPS forecast for 2026 with a midpoint of $6.54, which was 3.8% above analysts' projections. This strong profit outlook likely overshadowed a weaker forecast for flat revenue growth, giving investors reason for optimism.
After the initial pop the shares cooled down to $86.82, up 0.4% from previous close.
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What Is The Market Telling Us
Integer Holdings’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 31.4% on the news that the company reported third quarter earnings which revealed a significant reduction in its full-year profit forecast. For the third quarter, Integer met revenue expectations and beat profit forecasts on an adjusted per-share basis. However, investors focused on the negatives, including a significant 16.4% miss on adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), a key measure of profitability. The company's operating margin also declined compared to the same quarter last year. More concerning was the company's outlook. Management slightly lowered its full-year revenue guidance to a midpoint of $1.85 billion, which was 1% below analyst expectations. The cut to its full-year EBITDA forecast was even more severe, with the new midpoint of $322 million falling far short of the $402.3 million analysts had anticipated. This weak profit outlook for the remainder of the year appeared to be the primary driver behind the stock's steep sell-off.
Integer Holdings is up 13.1% since the beginning of the year, but at $86.82 per share, it is still trading 39.4% below its 52-week high of $143.21 from February 2025. Investors who bought $1,000 worth of Integer Holdings’s shares 5 years ago would now be looking at an investment worth $1,031.
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