On Thursday, BTIG adjusted its outlook on LENSAR Inc. (NASDAQ: LNSR), raising the price target to $10.00 from the previous $8.00. The firm retained its Buy rating on the company's stock following an impressive third-quarter performance. LENSAR reported quarterly results that surpassed Wall Street's expectations, driven by robust demand for its ALLY system and an increase in market share.
LENSAR's revenue for the third quarter reached $13.5 million, marking a 38.2% year-over-year increase and a 7.1% rise from the previous quarter. This performance significantly outstripped consensus estimates, which had forecasted revenue of $11.5 million. The company's loss per share (LPS) also beat expectations, coming in at $(0.13) compared to the estimated $(0.29). The positive results were attributed to the continued expansion of ALLY system placements, with the global install base now totaling 104 systems. This figure encompasses approximately 355 units when including older generation systems.
The company's procedure growth was notable, with a 29% year-over-year increase. This growth has led to LENSAR securing 19.9% of the femtosecond laser-assisted cataract surgery (FLACS) procedure volume, a jump from 18.4% in the second quarter of 2024. In the United States alone, procedure volumes grew by 22% year-over-year. The successful launch of the ALLY system has been a key growth driver, and the company has reported 24 systems in backlog as it moves into the fourth quarter of 2024. These backlogged orders are expected to support similar placement numbers to those seen in the third quarter and contribute to early fiscal year 2025 placements and sales.
InvestingPro Insights
LENSAR's recent performance aligns with several key metrics and insights from InvestingPro. The company's revenue growth of 17.99% over the last twelve months as of Q2 2024 supports the strong quarterly results mentioned in the article. Additionally, LENSAR's impressive stock performance is reflected in InvestingPro data, showing a 180.38% price total return over the past year and a 79.75% return over the last six months.
InvestingPro Tips highlight that LENSAR holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations, which could provide financial flexibility as the company continues to expand its ALLY system placements. However, it's worth noting that analysts do not anticipate the company to be profitable this year, aligning with the reported quarterly loss despite beating expectations.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for LENSAR, providing deeper insights into the company's financial health and market position.
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