Intersect ENT's (XENT) Q4 Preliminary Revenues Disappointing
Intersect ENT, Inc. XENT recently announced its preliminary financial results for the fourth quarter of 2020 and provided a business update as well. The company is slated to report fourth-quarter and full-year earnings on Mar 9, 2021.
Following the preliminary result announcement on Jan 12, shares of the company slid 2.6% to $23.98 at Jan 15’s close.
Results in Detail
Per the preliminary release, the company projects fourth quarter 2020 revenues in the range of $27.7-$28.1 million. This indicates a decline of 13.4-12.2% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for the same is pegged at $27.9 million.
The company’s SINUVA is estimated to have recorded solid quarterly revenues of $2.5 million. VENSURE, an acquired Fiagon product line for sinus balloon dilation, is estimated to have raked in U.S. revenues worth $0.3 million.
According to the preliminary result, the company anticipates its cash, cash equivalents and restricted cash to be almost $105 million as of Dec 31, 2020.
Its robust fourth-quarter 2020 preliminary revenues also highlight sequential revenue growth, driven by a consistent strength in its PROPEL franchise, record revenues for SINUVA and the initiation of its new VENSURE sinus balloon dilation business in the United States.
With the addition of Fiagon, the company strategically expanded its ENT product portfolio and expedited its foray into the adjacent sinus balloon dilation and sinus surgery navigation space.
On the basis of current and expected elective procedure volumes and referral trends, the company projects to grow 2021 revenues to the pre-COVID level of 2019 despite the continuing economic turbulence triggered by the crisis.
A Take on Q4
In the fourth quarter, we expect SINUVA to have benefited from the ongoing improvements in reimbursement and market access processes plus the increasing awareness of buy-and-bill and its comfort with the physicians. Further, PROPEL sales figure is likely to have improved in the fourth quarter, banking on the fact that the company is making efforts to address pent-up demand for FESS procedures.
Price Performance
In the past three months, the stock has gained 47.8% compared with 5% growth of its industry.
Zacks Rank and Key Picks
Intersect currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Hologic HOLX, PerkinElmer PKI and IDEXX Laboratories IDXX. While Hologic sports a Zacks Rank#1 (Strong Buy), the other two carry a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has a projected long-term earnings growth rate of 17.4%.
PerkinElmer has a projected long-term earnings growth rate of 19.5%.
IDEXX has an estimated long-term earnings growth rate of 15.8%.
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