What Happened?
Shares of medical technology company Integer Holdings (NYSE: ITGR) fell 8.3% in the afternoon session after the company reported second-quarter results that featured a slight miss on a key profitability metric, which overshadowed a revenue beat and raised profit guidance.
The medical technology company's sales increased 11.4% year-over-year to $476.5 million, surpassing Wall Street's expectations. However, its adjusted EBITDA, a measure of profitability, came in at $98.95 million, falling short of analyst estimates of $100.8 million. While its non-GAAP profit per share met expectations and the company lifted its full-year earnings forecast, the miss on EBITDA appeared to be the primary concern for investors, suggesting the otherwise strong report did not meet heightened expectations.
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What Is The Market Telling Us
Integer Holdings’s shares are not very volatile and have only had 6 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 previous big move we wrote about was 6 days ago when the stock dropped 3.2% as several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively. Additionally, some pharmaceutical and biotech companies experienced sharp drops following unfavorable news; for instance, Sarepta Therapeutics plunged after a report indicated another patient death tied to its experimental gene therapy, and GSK's blood cancer drug dosage was voted against by the FDA advisory committee. Broader market sentiment, including concerns about rising costs and inadequate pricing for 2025 plans among health insurers, also contributed to the downward pressure on healthcare equities.
Integer Holdings is down 18.9% since the beginning of the year, and at $107.20 per share, it is trading 25.7% below its 52-week high of $144.36 from January 2025. Investors who bought $1,000 worth of Integer Holdings’s shares 5 years ago would now be looking at an investment worth $1,538.
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