Greatbatch Q2 earnings release lifts shares

Greatbatch (NYSE:GB) shares climbed with the announcement of its Q2 results, growing from last year but narrowly missing analysts expectations

The Frisco, Texas-based company reported profits of $9.2 million, or 35¢ per share, on sales of $174.9 million for the 3 months ended July 3.

That amounts to a 24.8% bottom-line loss on sales growth of 1.6% compared with 2014.

Adjusted to exclude 1-time items, earnings per share were 64¢, falling short of analysts expectations by 5¢. The company also fell short on the street’s revenue expectations by $10 million.

Shares have climbed after release of the earnings, up roughly 4.3% as of mid-day trading.

“I am very satisfied with our results for the 2nd quarter, which were consistent with our expectations. During the quarter we continued to drive the implementation of our strategic plan with investments in technology, capacity and capabilities. We expect to finish the year strong based upon new and existing customer business pipelines and carry this momentum into 2016.” CEO Thomas Hook said in a press release.

“We are pleased with our second quarter results highlighted by four percent organic constant currency sales growth which was led by our cardiac and neuromodulation and orthopaedic product lines. The quarter also saw us deliver $0.64 adjusted diluted EPS which grew 5% for the quarter. Based on our first half results, as well as our expectations for the remainder of the year, we are maintaining our 2015 revenue and adjusted diluted EPS guidance ranges for 2015,” CFO Michael Dinkins said in a prepared statement.

Along with its Q2 reports, Greatbatch said that director Joseph Miller announced he would be leaving the company to head a spin-off of its QiG Group subsidiary, which will be known as Nuvectra Corporation. The move is slated for Q4 of 2015, according to the company.

“Earlier today, we filed a Form 10 registration statement with the U.S. Securities and Exchange Commission for our proposed spin-off from our QiG Group neuromodulation device business, now named Nuvectra. Nuvectra will be initially focused on the development and commercialization of the Algovita spinal cord stimulation system, the first application of this neurostimulation technology platform,” Hook said.

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