Tactile Systems Q1 Earnings Show Path to Revenue Growth, Profitability, Analyst Says
Tactile Systems Technology Inc (NASDAQ: TCMD) reported Q1 FY23 sales of $58.8 million, up 23% Y/Y, surpassing the consensus of $53.93 million.
The increase is attributable to a 22% increase in sales & rentals of the lymphedema product line and 24% higher sales of the airway clearance product line.
The company reported an adjusted operating loss of $(2.2) million versus $(5.4) million in Q1 2022, with an adjusted EBITDA of $0.5 million versus a $2.6 million loss a year ago.
Guidance: Tactile Systems raised its FY23 revenue outlook to approximately $271-$275 million, compared to prior guidance of $269-$273 million and a consensus of $271.75 million.
William Blair writes that the company posted one of the strongest quarters of top-line growth in lymphedema since before the pandemic, suggesting a more normalized business outlook.
As rep productivity strengthens, new products continue to gain traction (with more launches to come), and the company implements several margin expansion initiatives, the outlook remains compelling, particularly for one of the few small-cap names in med tech that is already profitable.
The analyst says the company is on its way to reaccelerating revenue growth and profitability post-COVID, leading to multiple expansions over time.
Price Action: TCMD shares are 12.10% higher at $21.00 during premarket on the last check Tuesday.
Latest Ratings for TCMD
Date | Firm | Action | From | To |
|---|---|---|---|---|
Nov 2020 | Oppenheimer | Upgrades | Perform | Outperform |
Apr 2020 | Canaccord Genuity | Maintains | Buy | |
Apr 2020 | BTIG | Maintains | Buy |
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