Core Viewpoint - Integer Holdings Corporation will host a conference call to discuss its financial results and business highlights for the second quarter of 2025 on July 24, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for Thursday, July 24, 2025, at 8 a.m. CT / 9 a.m. ET [1][6]. - An audio replay of the call will be available for seven days, accessible by dialing (800) 770-2030 or (609) 800-9909 with Conference ID 3120125 [2]. - The call will also be available live or via archived replay on the Investor Relations section of the Integer website [2]. Group 2: Company Overview - Integer Holdings Corporation is one of the largest medical device contract development and manufacturing organizations (CDMO) globally, serving markets such as cardiac rhythm management and neuromodulation [4]. - The company aims to enhance patient lives by providing innovative, high-quality products and solutions [4]. - Integer's brands include Greatbatch Medical® and Lake Region Medical® [4].

Integer (ITGR) Update / Briefing Summary Company Overview - Integer is one of the largest medical device Contract Development Manufacturing Organizations (CDMOs) globally, providing comprehensive services from concept to coding [13][18] - Recently acquired VSI Perylene, enhancing its coating capabilities with precision coatings including PTFE, hydrophilic, and perylene coatings [13][14] Industry Insights - The medical device industry has become increasingly complex, particularly in the coatings sector due to heightened environmental awareness and regulatory challenges [16][24] - Integer has initiated a comprehensive program to address the multifunctional challenges in coatings, focusing on supply chain, regulatory affairs, and quality assurance [20] Coating Technologies - Integer specializes in both hydrophilic and hydrophobic coatings, with a strategy to improve legacy platforms while investing in new coatings [20][21] - The two main areas of focus are perylene and PTFE coatings, with an emphasis on balancing lubricity and durability [22][41] Regulatory Landscape - There is growing scrutiny on PFAS materials, particularly due to potential health concerns and environmental impacts associated with their production and disposal [24][26] - The regulatory landscape is evolving, with no global alignment on timelines or impacts, leading to uncertainty in the medical device industry [25][32] Alternatives to PFAS - Integer is committed to providing known PTFE coatings while preparing for potential regulatory changes by developing alternatives [28][29] - Perylene was selected as a PFAS alternative due to its proven track record in the medical device industry, offering reliable performance and regulatory familiarity [35] - The transition from PFAS to alternatives involves trade-offs in durability, lubricity, and regulatory alignment [48][49] Future Applications - The adoption of PFAS-free alternatives may lead to new applications, particularly in wearable health tech sensors, which could transition from external to internal use [54][58] - Integer aims to support customers through every phase of product development, ensuring that coatings fit regulatory paths and end-user needs [62] Challenges and Considerations - Early integration of coating considerations in product development is crucial for cost efficiency and performance optimization [112] - Education on the capabilities and applications of alternatives like Perylene is necessary to overcome underutilization [114] Conclusion - Integer emphasizes the importance of proactive planning in response to regulatory changes and the need for a diverse portfolio of coating solutions to meet various application requirements [90][121] - The company encourages open communication with clients to navigate the complexities of transitioning from traditional coatings to alternatives [119][122]

Summary of Conference Call Company Overview - The company discussed is Integer, which operates in the cardiovascular medical device industry. The transition of CEO from Joe to Peyman is highlighted, with Peyman having been part of the leadership team since early 2018 [1][2]. Core Strategies and Goals - Integer's strategy focuses on four targeted growth markets: electrophysiology, structural heart, neurovascular, and neuromodulation. The company aims to grow at 200 basis points above market growth rates [5][10]. - The company has established growth teams to refine and execute strategies in these markets, leading to a 270% increase in development work since 2017 [10][11]. - Profitability targets are set to grow at twice the rate of sales growth, supported by the Integer Production System [6][51]. Market Dynamics - The company is positioned to benefit from innovation in the industry, focusing on unmet patient needs and ensuring integration into customer programs [8][9]. - The electrophysiology market is projected to double in size to $20 billion over the next five years, providing significant growth opportunities [28][31]. - Integer's vertical integration allows it to manufacture a larger portion of devices, reducing the need for multiple suppliers and enhancing competitive advantage [32]. Financial Performance - The company reported an 11% organic growth rate in its C and D segments, with expectations for mid-teens growth in the CNV business [21][22]. - The backlog is currently at $800 million, expected to decrease to around $600 million by year-end due to the exit of the Portal Medical business and improved manufacturing capacity [56][57]. Acquisitions and Growth - Integer's acquisition strategy focuses on tuck-in acquisitions that enhance critical capabilities in targeted growth markets [16][20]. - The company has fostered relationships with smaller, founder-led businesses, positioning itself as a credible partner for growth [19][20]. Emerging Markets and Innovations - Neuromodulation is identified as a key area for growth, with a 40% increase in the number of customers and programs since 2020 [43][45]. - The company is actively involved in the development of therapies for ischemic stroke and intracranial aneurysm through its acquisition of Inuraco [40][41]. Operational Efficiency - Integer emphasizes continuous improvement in manufacturing processes, aiming to enhance efficiency and reduce waste [54][55]. - The company has a strong manufacturing footprint that aligns with customer needs for design and development [55]. Conclusion - Integer is well-positioned for sustained growth through its strategic focus on innovation, targeted markets, and operational efficiencies, with a clear roadmap for future profitability and market expansion [6][51].

Core Viewpoint - Integer (ITGR) is currently more attractive to value investors compared to Penumbra (PEN) based on various valuation metrics and earnings outlook [1][3]. Valuation Metrics - ITGR has a forward P/E ratio of 19.17, significantly lower than PEN's forward P/E of 69.63 [5]. - The PEG ratio for ITGR is 1.04, indicating a more favorable valuation relative to its expected earnings growth, while PEN's PEG ratio stands at 2.31 [5]. - ITGR's P/B ratio is 2.63, compared to PEN's P/B of 8.27, suggesting that ITGR is undervalued relative to its book value [6]. Zacks Rank and Value Grades - ITGR holds a Zacks Rank of 1 (Strong Buy), indicating a stronger improvement in earnings outlook compared to PEN, which has a Zacks Rank of 2 (Buy) [3]. - Based on the valuation metrics, ITGR has a Value grade of B, while PEN has a Value grade of D, reinforcing the view that ITGR is the better option for value investors [6].

Core Insights - The Medical Instruments industry is experiencing significant advancements due to artificial intelligence (AI) and predictive analytics, which are driving innovation in diagnostics, patient monitoring, and personalized treatment [2][4] - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing challenges such as geopolitical tensions and supply chain issues [4][8] - The industry is currently underperforming compared to the S&P 500 but has shown resilience against sector declines [17] Industry Overview - The Zacks Medical - Instruments industry is highly fragmented, involving extensive research and development across various therapeutic areas, regulated by the FDA [5] - Recent trends include the integration of AI in diagnostics, the rise of telemedicine, robotic-assisted surgeries, and advancements in 3D printing and gene editing [6][9] - The ongoing merger and acquisition trend is notable, with 305 M&A transactions in 2024 totaling over $63.1 billion, indicating a competitive landscape [10][11] Company Highlights Integer Holdings - Integer Holdings focuses on portfolio optimization and has divested its Non-Medical business to support long-term growth [20] - The consensus estimate for 2025 sales is $1.87 billion, reflecting a 7.7% increase from 2024, with EPS expected to rise by 19.4% to $6.33 [21] AngioDynamics - AngioDynamics is focusing on cancer treatment markets and has a strong product pipeline, with sales for fiscal 2026 estimated at $305 million, a 6.3% increase from fiscal 2025 [22][23] Penumbra - Penumbra is experiencing consistent revenue growth driven by strong patient outcomes and growth in its vascular and neuro businesses [24] - The consensus estimate for Penumbra's 2025 sales is $1.35 billion, indicating a 13.4% rise from 2024, with EPS expected to improve by 67.6% to $3.72 [25]

Company Overview - Integer Holdings Corporation (NYSE: ITGR) is a leading medical device contract development and manufacturing organization (CDMO) serving the cardiac rhythm management, neuromodulation, and cardio and vascular markets [3] - The company is recognized as a strategic partner for medical device companies and OEMs, focusing on enhancing patient lives through innovative, high-quality products and solutions [3] - Integer's brands include Greatbatch Medical and Lake Region Medical [3] Upcoming Events - Integer will participate in the 2025 Truist Securities MedTech Conference on June 17, 2025, in Boston, with a fireside chat scheduled for 10:40 a.m. ET [1] - A live webcast of the presentation will be available on the Investor Relations section of the Integer website [2]

Core Viewpoint - Integer (ITGR) is currently viewed as a better value opportunity compared to SONOVA HOLDING (SONVY) based on various financial metrics and Zacks Rank evaluations [1][7]. Valuation Metrics - Integer has a forward P/E ratio of 18.77, while SONOVA HOLDING has a higher forward P/E of 25.39 [5]. - The PEG ratio for Integer is 1.02, indicating a more favorable valuation in relation to its expected earnings growth, compared to SONOVA's PEG ratio of 3.44 [5]. - Integer's P/B ratio stands at 2.58, significantly lower than SONOVA's P/B ratio of 7.47, suggesting that Integer is more undervalued relative to its book value [6]. Earnings Outlook - Integer is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, indicating a positive trend in earnings estimate revisions [3][7].

Summary of Integer Holdings Conference Call Company Overview - **Company**: Integer Holdings - **Industry**: Medical Technology (Med Tech) Key Points and Arguments CEO Transition - Joe Dizik, the current CEO, is transitioning to retirement, with Peyman Kales set to take over later this year [5][7] - The transition is seen as timely, with the company in a strong position, having met strategic objectives set in 2018 [7][8] Financial Performance and Guidance - Integer Holdings reported sales growth of 8% to 10% for the year, with organic growth of 6% to 8% [8] - Net income is expected to rise by 19% to 26%, and earnings per share guidance is set at 16% to 23% [8] - Q1 results showed 6% organic growth, with a reported 17% growth in the cardiovascular segment [19][20] Strategic Focus and Market Position - The company has a strong presence in growth markets, particularly in electrophysiology (EP) and pulsed field ablation (PFA) [15][16] - The pipeline of opportunities has increased by 270%, with 80% focused on growth markets [16] - Integer Holdings aims to maintain a debt leverage ratio of 2.5 to 3.5, which is considered prudent for the industry [8][17] Operational Insights - Operating income grew by 14% in Q1, indicating strong operational leverage [28] - The company expects to see improvements in gross margins and operational efficiencies, particularly in R&D [30][32] - Integer Holdings is exiting the portable medical business, which is expected to decline by $29 million year-over-year, offset by $59 million from acquisitions [26][27] Tariff and Supply Chain Management - The expected tariff impact for 2025 is estimated to be between $1 million to $5 million, due to the company's supply chain positioning [40][41] - Integer Holdings has a global manufacturing footprint, which mitigates tariff risks [46][47] Growth Areas - The cardiovascular business has reached $1 billion and is growing double digits, driven by acquisitions and market expansion [55] - Emerging markets such as neuromodulation and cardiac rhythm management are expected to drive future growth, with a projected growth rate of 15% to 20% [66][67] Portfolio Management - Integer Holdings has divested non-core assets to focus on high-potential markets, particularly in cardiovascular and neuromodulation [68][70] - The company emphasizes the importance of cash generation from established segments to fund growth in faster-growing areas [70][72] Additional Important Insights - The leadership transition is expected to be smooth, with Peyman Kales being well-prepared to take over [11][15] - The company maintains strong relationships with customers, which aids in navigating pricing pressures and cost management [52][54] - Integer Holdings is committed to a long-term growth strategy, focusing on innovation and market leadership in targeted segments [17][60]

Core Insights - Integer (ITGR) is currently rated as a Strong Buy with a Zacks Rank of 1, while SONOVA HOLDING (SONVY) has a Zacks Rank of 4, indicating a Sell recommendation [3] - ITGR is showing an improving earnings outlook, which is a significant factor in its favorable ranking [7] Valuation Metrics - ITGR has a forward P/E ratio of 18.61, compared to SONVY's forward P/E of 23.74, suggesting that ITGR may be undervalued relative to SONVY [5] - The PEG ratio for ITGR is 1.01, while SONVY's PEG ratio is significantly higher at 3.22, indicating that ITGR has a better growth-to-price ratio [5] - ITGR's P/B ratio stands at 2.53, whereas SONVY's P/B ratio is 6.99, further supporting the notion that ITGR is a more attractive value option [6] - Based on these valuation metrics, ITGR holds a Value grade of B, while SONVY has a Value grade of D [6]

Shares of Integer (ITGR) have gained 3.2% over the past four weeks to close the last trading session at $116.55, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $150.38 indicates a potential upside of 29%.The mean estimate comprises eight short-term price targets with a standard deviation of $6.95. While the lowest estimate of $140 indicates a 20.1% increase from the current pri ...