Oppenheimer has adjusted its outlook on Artivion Inc. (NYSE:AORT), increasing the price target to $30 from the previous $25 while maintaining an Outperform rating.
The company recently announced its second-quarter 2024 revenue, which was reported at $98.0 million, marking a 10% year-over-year growth. This performance was consistent with Oppenheimer's and consensus estimates of $98.0 million and $97.6 million, respectively.
Artivion's growth was particularly noted in its aortic stents and grafts segment, which saw a 14% increase, and its On-X product line, which experienced a 15% rise.
Looking forward, the company anticipates the premarket approval (PMA) for its AMDS product by late 2025 and aims to complete the enrollment for the Endospan NEXUS trial by the end of 2024, with approval expected in the second half of 2026.
In light of its performance, Artivion has revised its full-year 2024 revenue guidance upward, now projecting between $388 million and $396 million, compared to the previous range of $386 million to $396 million.
This updated forecast slightly surpasses the estimates of both Oppenheimer and the consensus, which stood at $393 million and $391 million, respectively.
The management of Artivion expressed confidence in maintaining double-digit top-line growth and aims to double the growth rate of the company's bottom line. The firm's consistent ability to meet or exceed expectations has been a positive indicator for analysts.
The upward revision of Artivion's price target by Oppenheimer reflects the company's strong quarterly results and the raised revenue guidance for the fiscal year 2024.
Artivion's first quarter 2024 earnings report showed a 16% year-over-year growth in constant currency revenue, reaching $97.4 million, alongside a substantial 60% increase in adjusted EBITDA. In response to this robust growth, Artivion raised its revenue guidance for 2024, predicting a constant currency growth rate of 9-12%.
Furthermore, Artivion's strategic deal with Endospan has been adjusted, modifying the upfront payment terms and milestone payments related to the NEXUS stent system.
The modification is expected to benefit both companies, as it reduces the upfront payment for Artivion and adjusts the guaranteed $100 million minimum milestone to a 2.5 times multiple of the second year's revenue.
InvestingPro Insights
Following the recent updates from Artivion Inc. (NYSE:AORT), InvestingPro data paints a comprehensive picture of the company's financial health and market performance. With a market capitalization of $1.06 billion, Artivion stands out for its substantial revenue growth over the last twelve months as of Q1 2024, reporting a 15.13% increase. This aligns with the company's upward revision of its full-year 2024 revenue guidance, showcasing a promising trajectory for future financial performance. Additionally, the company's gross profit margin remains strong at 64.75%, indicating efficient management of production costs and profitability.
InvestingPro Tips reveal that analysts are expecting net income growth this year for Artivion, which could be a driving factor behind the positive outlook from Oppenheimer. However, it's worth noting that two analysts have revised their earnings expectations downwards for the upcoming period, indicating potential headwinds or a more conservative view of the company's earnings potential. Despite this, the company's stock has experienced a large price uptick over the last six months, with a 47.61% return, suggesting investor confidence in its growth prospects.
For investors seeking more detailed analysis and additional InvestingPro Tips, Artivion's profile on Investing.com includes a total of 12 tips that could provide further insights into the company's performance and investment potential. The current fair value estimates from analysts and InvestingPro stand at $27.35 and $20.17 respectively, offering a range of perspectives on the company's valuation.
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