Greatbatch, Inc. (NYSE:GB) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.14%.
Greatbatch, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 18.92% to $0.44 in the quarter versus EPS of $0.37 in the year-earlier quarter.
Revenue: Decreased 6.81% to $148.26 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Greatbatch, Inc. reported adjusted EPS income of $0.44 per share. By that measure, the company beat the mean analyst estimate of $0.42. It missed the average revenue estimate of $160.14 million.
Quoting Management: “As expected, our first quarter 2013 revenue was lower than the prior year, which was offset by our improved operating margins due to our plant consolidations and more focused RD&E investment, partially offset by our continued investment in sales and marketing resources; however, the magnitude of the decline in our sales was more than we anticipated,” stated Thomas J. Hook, President and CEO, Greatbatch, Inc. “We are pleased with the performance of our orthopaedics product line, which had 11% organic growth. Additionally, we continue to expect new product introductions to drive second half portable medical growth and to sustain or slightly outperform the CRM market. However, given the sales results for the first quarter, we now expect that we will be at the lower end of our previously communicated revenue range for 2013.”
Key Stats (on next page)…