Greatbatch, Inc. ( GB ) acquired CCC Medical Devices, a Uruguay-based developer and manufacturer of active implantable medical (AIMD) systems, in an effort to partner with more medical device companies and complement its core discrete technology offerings. The financial terms of the transaction were kept under wraps.
Located in Montevideo, CCC Medical Devices designs and produces a range of devices for medical device companies all over the world, including implantable pulse generators, programmer systems, battery chargers, patient wands and leads.
With the acquisition of CCC Medical Devices, GB aims to enhance its medical device innovation efforts. Combining the knowledge, talent and customer base of both companies, GB hopes to produce better products for the medical community and improve the lives of people worldwide.
GB reported disappointing results for the second quarter of 2014 ended Jul 4, 2014, leading to a downward trend in its shares. After the earnings release on Jul 31, 2014, shares of GB fell 11.4% to $45.03 till the last closing date.
Adjusted earnings per share came in at 60 cents, reflecting a 7.1% rise over 56 cents in the prior-year quarter and were in line with the Zacks Consensus Estimate. Revenues increased nominally by 0.4% to $172.1 million but missed the Zacks Consensus Estimate of $177 million by 2.8%.
GB reaffirmed its 2014 adjusted earnings and revenues guidance provided at the beginning of the year. Management continues to expect adjusted earnings per share in the range of $2.25-$2.35, indicating a 7% to 12% rise over 2013. The current Zacks Consensus Estimate of $2.32 lies within the guided range.
For 2014, revenues are anticipated in the range of $685 million to $705 million, reflecting a 3% to 6% rise over 2013. The Zacks Consensus Estimate of $699 million lies within the guided range.
Currently, GB carries a Zacks Rank #4 (Sell). Better-ranked stocks in the medical instruments sector include Alphatec Holdings, Inc. ( ATEC ), RTI Surgical Inc. ( RTIX ) and Bacterin International Holdings, Inc. ( BONE ). While Alphatec Holdings and RTI Surgical sport a Zacks Rank #1 (Strong Buy), Bacterin International Holdings carries a Zacks Rank #2 (Buy).
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