On Monday, Needham reiterated its Buy rating on AtriCure Inc. (NASDAQ: NASDAQ:ATRC) shares with a consistent price target of $40.00. The firm's analysts highlighted AtriCure's preannouncement of fourth-quarter 2024 revenue that surpassed market expectations, citing a year-over-year increase of 17% to $124.3 million compared to the consensus estimate of $119.8 million. The medical device company, currently valued at $1.65 billion, maintains a "GOOD" overall financial health score according to InvestingPro analysis, despite not being profitable in the last twelve months.
AtriCure's U.S. revenue for the quarter is expected to reach $101.6 million, marking a 14% growth year-over-year and exceeding the consensus forecast of $98.4 million. International sales also showed robust performance with an expected $22.7 million, a significant 28% growth from the previous year, which also outpaced the consensus of $21.3 million.
The company attributed its revenue growth to strong sales of its cryoSPHERE products, followed by its open-heart AtriClip products, and its Encompass product. With a current ratio of 3.62, InvestingPro data shows the company maintains strong liquidity, with liquid assets well exceeding short-term obligations.
Looking ahead to the full year, AtriCure anticipates 2024 revenue to hit $465.3 million, slightly above the consensus estimate of $461 million. The management reaffirmed its previous guidance for adjusted EBITDA to be in the range of approximately $26-29 million, in line with the consensus of $27.6 million, and adjusted earnings per share (EPS) to be between ($0.74) and ($0.80), which is more favorable than the consensus estimate of ($0.82).
Based on InvestingPro's Fair Value analysis, the stock appears fairly valued at current levels, with analysts maintaining a strong buy consensus and targets ranging from $36 to $61 per share. Discover more detailed insights and 12+ additional ProTips with an InvestingPro subscription.
Furthermore, AtriCure provided guidance for 2025, projecting revenue to be in the range of approximately $517-527 million, which represents an 11-13% growth. This forecast is roughly in line with the market consensus of $523 million. The company's adjusted EBITDA for 2025 is expected to be between $40-44 million, surpassing the consensus of $36.5 million.
Needham's analysts expressed optimism regarding AtriCure's second-quarter performance, noting that the results suggest the company is effectively navigating through challenges such as competition from pulsed field ablation and Medtronic (NYSE:MDT)'s Penditure. The firm plans to update its model following the full report of AtriCure's fourth-quarter 2024 results, reaffirming its positive stance on the company's stock.
In other recent news, AtriCure Inc. reported strong financial results for the fourth quarter and the full year of 2024. The company's fourth-quarter revenue rose to $124.3 million, a 17% increase from the same period in 2023. For the full year of 2024, AtriCure expects revenue to reach $465.3 million, reflecting a 17% growth from the previous year.
Looking forward, AtriCure has set its 2025 revenue projections between $517 million and $527 million. Piper Sandler analysts expressed optimism for AtriCure's future, anticipating positive fiscal year outlooks.
In other developments, AtriCure announced an Analyst & Investor Day to discuss its product portfolio and financial goals. These are recent developments for AtriCure, which has maintained a strong financial health profile and continues to show impressive revenue growth.
In related news, Procept BioRobotics initiated a public offering of common stock valued at $175 million. Analyst firms like Morgan Stanley (NYSE:MS) and Jefferies have given various ratings to Procept BioRobotics after it reported a robust revenue growth of 66% in the third quarter.
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