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Intersect ENT (XENT) Reports Q3 Loss, Revenues Meet Estimates
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Intersect ENT Inc. reported third-quarter 2019 loss per share of 41 cents, wider than the Zacks Consensus Estimate of loss of 40 cents. The reported loss was significantly wider than the year-ago loss of 25 cents.
Reported revenues in the third quarter declined 2.5% year over year to $24.1 million but was in line with the Zacks Consensus Estimate. The year-over-year downside resulted from lower sales of the PROPEL product portfolio. However, SINUVA contributed 5% to third-quarter 2019 revenues.
Margins
Cost of sales was $4.9 million in the reported quarter, down 6.3% year over year. Gross margin was 79.7%, reflecting an expansion of 82-basis points (bps) year over year.
Intersect ENT, Inc. Price, Consensus and EPS Surprise
Selling, general and administrative expenses were up 16.1% to $26.4 million in the quarter under review. Research and development expenses were $6.1 million, up 26.1% year over year. The company reported operating loss of $13.4 million compared with the year-ago operating loss of $8.2 million.
Cash Position
Intersect ENT exited the third quarter of 2019 with cash, cash equivalents and short-term investments of $89.2 million compared with $93.5 million at the end of the second quarter.
2019 Guidance Reaffirmed
Intersect ENT expects 2019 revenues to be flat at $108.5 million reported in 2018 (unchanged from the prior provided figure). The Zacks Consensus Estimate for the metric is pegged at $108.6 million, which is above the company’s provided figure.
Its 2019 outlook for gross margin was reiterated at 80-81% and operating expenses outlook at $135-$137 million.
Our Take
Intersect ENT ended the third quarter on a disappointing note, with wider net loss and revenues declining on a year-over-year basis.
However, we are upbeat about the company's revenue growth on the increased adoption of the SINUVA Sinus Implant. Management is optimistic that a renewed focus on PROPEL market development should enhance SINUVA product access. The preliminary decision by Centers for Medicare & Medicaid Services (“CMS”) to assign a J code and the solid potential of SINUVA buoy optimism as well.
Zacks Rank & Other Key Picks
Currently, Intersect ENT carries a Zacks Rank #2 (Buy).
Some other top-ranked medical device companies, which posted solid results this earnings season, are ResMed Inc (RMD - Free Report) , NuVasive, Inc and Thermo Fisher Scientific Inc (TMO - Free Report) .
ResMed, with a Zacks Rank #2, reported first-quarter fiscal 2020 adjusted EPS of 93 cents, surpassing the Zacks Consensus Estimate by 6.9%. Its revenues of $681.1 million outpaced the consensus mark by 3.7%.
NuVasive’s third-quarter 2019 adjusted EPS of 59 cents surpassed the Zacks Consensus Estimate by 9.3%. Its revenues totaled $290.8 million, which surpassed the consensus estimate by 2.4%. The stock currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher, with a Zacks Rank #2, delivered third-quarter 2019 adjusted EPS of $2.94, beating the Zacks Consensus Estimate by 2.1%. Its revenues of $6.27 billion beat the Zacks Consensus Estimate by 1.3%.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Intersect ENT (XENT) Reports Q3 Loss, Revenues Meet Estimates
Intersect ENT Inc. reported third-quarter 2019 loss per share of 41 cents, wider than the Zacks Consensus Estimate of loss of 40 cents. The reported loss was significantly wider than the year-ago loss of 25 cents.
Reported revenues in the third quarter declined 2.5% year over year to $24.1 million but was in line with the Zacks Consensus Estimate. The year-over-year downside resulted from lower sales of the PROPEL product portfolio. However, SINUVA contributed 5% to third-quarter 2019 revenues.
Margins
Cost of sales was $4.9 million in the reported quarter, down 6.3% year over year. Gross margin was 79.7%, reflecting an expansion of 82-basis points (bps) year over year.
Intersect ENT, Inc. Price, Consensus and EPS Surprise
Intersect ENT, Inc. price-consensus-eps-surprise-chart | Intersect ENT, Inc. Quote
Selling, general and administrative expenses were up 16.1% to $26.4 million in the quarter under review. Research and development expenses were $6.1 million, up 26.1% year over year. The company reported operating loss of $13.4 million compared with the year-ago operating loss of $8.2 million.
Cash Position
Intersect ENT exited the third quarter of 2019 with cash, cash equivalents and short-term investments of $89.2 million compared with $93.5 million at the end of the second quarter.
2019 Guidance Reaffirmed
Intersect ENT expects 2019 revenues to be flat at $108.5 million reported in 2018 (unchanged from the prior provided figure). The Zacks Consensus Estimate for the metric is pegged at $108.6 million, which is above the company’s provided figure.
Its 2019 outlook for gross margin was reiterated at 80-81% and operating expenses outlook at $135-$137 million.
Our Take
Intersect ENT ended the third quarter on a disappointing note, with wider net loss and revenues declining on a year-over-year basis.
However, we are upbeat about the company's revenue growth on the increased adoption of the SINUVA Sinus Implant. Management is optimistic that a renewed focus on PROPEL market development should enhance SINUVA product access. The preliminary decision by Centers for Medicare & Medicaid Services (“CMS”) to assign a J code and the solid potential of SINUVA buoy optimism as well.
Zacks Rank & Other Key Picks
Currently, Intersect ENT carries a Zacks Rank #2 (Buy).
Some other top-ranked medical device companies, which posted solid results this earnings season, are ResMed Inc (RMD - Free Report) , NuVasive, Inc and Thermo Fisher Scientific Inc (TMO - Free Report) .
ResMed, with a Zacks Rank #2, reported first-quarter fiscal 2020 adjusted EPS of 93 cents, surpassing the Zacks Consensus Estimate by 6.9%. Its revenues of $681.1 million outpaced the consensus mark by 3.7%.
NuVasive’s third-quarter 2019 adjusted EPS of 59 cents surpassed the Zacks Consensus Estimate by 9.3%. Its revenues totaled $290.8 million, which surpassed the consensus estimate by 2.4%. The stock currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher, with a Zacks Rank #2, delivered third-quarter 2019 adjusted EPS of $2.94, beating the Zacks Consensus Estimate by 2.1%. Its revenues of $6.27 billion beat the Zacks Consensus Estimate by 1.3%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>