SeaSpine Holdings announced preliminary 3Q revenues in the range of $42.9 million to $43.3 million, beating the Street consensus of $39.5 million. 3Q revenue figures show growth of 8% to 9% year-over-year. The medical technology company is set to report its 3Q results on Nov. 9.
SeaSpine (SPNE) expects 3Q U.S. revenue to increase by 9% to 10% to range of $38.8 million to $39.2 million year-over-year, but expects its international sales to decline by 5% year-over-year to approximately $4.1 million. The company further forecasts cash, cash equivalents and investments to be approximately $93 million at the end of 3Q (Sept. 30), with no debt outstanding under its credit facility.
For 4Q, the company reported preliminary revenues in the range of $47 million to $48 million, higher than analysts’ expectations of $39.5 million. Preliminary 4Q revenues reflect a growth by 7% to 10% year-over-year.
SeaSpine’s CEO Keith Valentine said “Our execution on planned launches of differentiated new products, such as the recent limited commercial launches of our Explorer TO Expandable Interbody Device and NorthStar OCT [Optical coherence tomography] systems, was a key driver of our third quarter revenue growth and, coupled with the strength of our cash position, has enabled us to attract new distribution as other companies struggle.” (See SPNE stock analysis on TipRanks).
Following the preliminary figures, Piper Sandler analyst Matt O’Brien maintained a Buy rating with a price target of $18 (19.1% upside potential), calling SPNE a “must-own” stock. He said that management is convinced that the company can continue to take share and deliver double-digit growth.
The rest of the Street is in line with O’Brien’s bullish outlook on the stock. The Strong Buy analyst consensus is based on 4 Buys. The average price target of $20 implies upside potential of about 32.3%. Shares are up 25.9% year-to-date.
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