Shares of Myomo rallied 6.3% in Monday’s pre-market session after the wearable medical robotics company announced strong 4Q and full-year 2020 preliminary results. Myomo is set to report its 4Q results in mid-March.
Myomo (MYO) said that it expects to generate 4Q revenue in the range of $3.2 million to $3.7 million, reflecting an increase of about 110% to 143% from the same period last year. As for 2020, the company projects to sales of of between $7 million to $7.5 million, implying year-over-year growth of 84% to 97%.
Myomo’s CFO David Henry commented, “The relatively wide range for fourth quarter 2020 revenue expectations is attributable to a change in revenue recognition from certain insurance plans.” (See MYO stock analysis on TipRanks)
Furthermore, the company expects its 4Q cash utilization to be $1.1 million, which would be the lowest since it went public in June 2017.
On Nov. 11, Roth Capital analyst Scott Henry upgraded Myomo to Buy from Hold after the company reported a 218% surge in 3Q revenue year-over-year. In a note to investors, Henry said that he believes that the 3Q momentum should continue through the fourth quarter with sequential revenue gains.
The analyst estimates that the company has a cash runway through 2021. He lifted the stock’s price target to $7 (20.5% downside potential) from $5. Shares have declined by about 14.9% over the last year.