We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Asensus Surgical (ASXC) Q2 Loss Widens, Revenues In Line
Read MoreHide Full Article
Asensus Surgical, Inc. (ASXC - Free Report) reported second-quarter 2023 loss per share of 9 cents, wider than the Zacks Consensus Estimate of a loss per share 8 cents as well as the year-ago adjusted loss of 7 cents per share.
GAAP EPS in the year-ago quarter was 8 cents. The year-ago adjustment included certain amortization expenses.
Revenues in Detail
Asensus Surgical registered revenues of $1.08 million in the reported quarter, up 8.8% year over year. The figure matched the Zacks Consensus Estimate.
Quarter in Details
ASXC recorded Product revenues of $298 thousands in the second quarter, reflecting a 17.3% rise year over year. Service revenues were $289 thousands, down 31.8% year over year. Lease revenues were $494 thousands, marking a 56.3% surge year over year.
During the second quarter, there was a 27% increase in total surgical procedures completed, utilizing the Senhance System compared to the year-ago period. The main drivers of this expansion were consistent utilization patterns brought on by an increased installed base, an increase of new surgeon users at existing installations and a broader market recovery.
Asensus Surgical, Inc. Price, Consensus and EPS Surprise
In the reported quarter, Asensus Surgical reported a gross loss of $1.9 million, wider than the year-ago loss of $1.4 million. Total cost of revenues soared 30.9% in the second quarter.
Selling, general and administrative expenses rose 23.5% to $4.4 million. Research and development expenses totaled $8.9 million, up 23.8% year over year. General and administrative expenses of $5.1 million rose 2.6% year over year.
Adjusted operating expenses were $18.6 million, up 17.1% from the figure recorded in the prior-year quarter.
Adjusted operating loss was $20.5 million compared with the prior-year quarter’s loss of $15.8 million.
Financial Update
Asensus Surgical exited second-quarter 2023 with cash and cash equivalents and short-term investments, available-for-sale of $39.9 million compared with the 2022-end record of $70.5 million.
Our Take
Asensus Surgical exited the second quarter of 2023 with earnings miss and in-line revenues. While escalating costs and expenses are weighing on the profitability of the business, the company is optimistic about the upcoming 2023 milestones.
The company noted that during the second half of 2023, it expects to achieve complete integrated system testing for LUNA Surgical System, finalize manufacturing strategy for LUNA Surgical System, initiate preclinical evaluation for LUNA Surgical System, finalize strategic relationship with a graphics hardware provider and establish pilot manufacturing for the updated Intelligent Surgical Unit platform.
According to the company, LUNA System development has made notable progress in R&D and is now transitioning to testing and evaluation before regulatory filings.
Zacks Rank and Stocks to Consider
Currently, Asensus Surgical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Asensus Surgical (ASXC) Q2 Loss Widens, Revenues In Line
Asensus Surgical, Inc. (ASXC - Free Report) reported second-quarter 2023 loss per share of 9 cents, wider than the Zacks Consensus Estimate of a loss per share 8 cents as well as the year-ago adjusted loss of 7 cents per share.
GAAP EPS in the year-ago quarter was 8 cents. The year-ago adjustment included certain amortization expenses.
Revenues in Detail
Asensus Surgical registered revenues of $1.08 million in the reported quarter, up 8.8% year over year. The figure matched the Zacks Consensus Estimate.
Quarter in Details
ASXC recorded Product revenues of $298 thousands in the second quarter, reflecting a 17.3% rise year over year. Service revenues were $289 thousands, down 31.8% year over year. Lease revenues were $494 thousands, marking a 56.3% surge year over year.
During the second quarter, there was a 27% increase in total surgical procedures completed, utilizing the Senhance System compared to the year-ago period. The main drivers of this expansion were consistent utilization patterns brought on by an increased installed base, an increase of new surgeon users at existing installations and a broader market recovery.
Asensus Surgical, Inc. Price, Consensus and EPS Surprise
Asensus Surgical, Inc. price-consensus-eps-surprise-chart | Asensus Surgical, Inc. Quote
Margin Trend
In the reported quarter, Asensus Surgical reported a gross loss of $1.9 million, wider than the year-ago loss of $1.4 million. Total cost of revenues soared 30.9% in the second quarter.
Selling, general and administrative expenses rose 23.5% to $4.4 million. Research and development expenses totaled $8.9 million, up 23.8% year over year. General and administrative expenses of $5.1 million rose 2.6% year over year.
Adjusted operating expenses were $18.6 million, up 17.1% from the figure recorded in the prior-year quarter.
Adjusted operating loss was $20.5 million compared with the prior-year quarter’s loss of $15.8 million.
Financial Update
Asensus Surgical exited second-quarter 2023 with cash and cash equivalents and short-term investments, available-for-sale of $39.9 million compared with the 2022-end record of $70.5 million.
Our Take
Asensus Surgical exited the second quarter of 2023 with earnings miss and in-line revenues. While escalating costs and expenses are weighing on the profitability of the business, the company is optimistic about the upcoming 2023 milestones.
The company noted that during the second half of 2023, it expects to achieve complete integrated system testing for LUNA Surgical System, finalize manufacturing strategy for LUNA Surgical System, initiate preclinical evaluation for LUNA Surgical System, finalize strategic relationship with a graphics hardware provider and establish pilot manufacturing for the updated Intelligent Surgical Unit platform.
According to the company, LUNA System development has made notable progress in R&D and is now transitioning to testing and evaluation before regulatory filings.
Zacks Rank and Stocks to Consider
Currently, Asensus Surgical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories (ABT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .
Abbott, carrying a Zacks Rank of 2 (Buy), reported second-quarter 2023 adjusted EPS of $1.08, beating the Zacks Consensus Estimate by 3.8%. Revenues of $9.98 billion outpaced the consensus mark by 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, beating the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12.1%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, beating the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the Zacks Consensus Estimate by 1.4%. It currently carries a Zacks Rank #2.
Intuitive Surgical has a long-term estimated growth rate of 14.5%. ISRG’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 4.2%.