On Thursday, Xtant Medical Holdings Inc. (NYSE: NYSE:XTNT) shares received an updated price target from BTIG, with the firm raising its expectations from $2.00 to $3.00 while reiterating a Buy rating on the stock.
The adjustment followed Xtant's first-quarter results for 2024, which showcased revenue of $27.9 million, marking a 55.4% increase year-over-year, and a loss per share (LPS) of $0.03.
These figures surpassed BTIG's and consensus estimates, which had anticipated revenues of $24.6 million and $25.8 million, and an LPS of $0.01 and $0.02, respectively.
The performance was attributed to the strong showing of the legacy Surgalign portfolio, acquired 2-3 quarters prior, which has been contributing significantly to the hardware segment.
Additionally, Xtant has seen improvements in stem cell supply dynamics. Gross margins (GMs) for Xtant have also seen an uptick, exceeding expectations by 60 basis points, reaching approximately 62.1%. This has enabled the company to report modest positive adjusted EBITDA for four consecutive quarters.
Xtant has updated its full-year 2024 guidance to a range of $116 million to $120 million, up from the previous forecast of $112 million to $116 million. This new guidance exceeds BTIG's prior estimate of $114.0 million and reflects an anticipated growth of 27% to 31%, including contributions from both organic and inorganic business segments. The company also projects double-digit growth in the second half of 2024.
The report concluded with a positive outlook for Xtant Medical, noting that the company has overcome past challenges with stem cell supply and is on track to continue growing its base business.
This is expected to be bolstered by increasing contributions from the Surgalign legacy hardware, new product offerings in OEM sales, orthobiologics, and amniotic products, all while maintaining positive adjusted EBITDA and aiming to achieve positive operating cash flow in the fourth quarter of 2024.
InvestingPro Insights
Xtant Medical Holdings Inc. (NYSE: XTNT) has been navigating a dynamic market landscape, with its recent first-quarter results for 2024 catching the attention of investors and analysts alike. In light of this, InvestingPro offers a deeper look into the company's financial health and market performance.
According to InvestingPro Data, Xtant boasts a market capitalization of $103 million, indicating a notable presence in its sector. Despite a high P/E ratio of 133.52, the company's revenue has shown impressive growth, with a 57.5% increase over the last twelve months as of Q4 2023. This surge is further emphasized by the quarterly revenue growth of 84.07% in Q1 2024.
One InvestingPro Tip highlights that Xtant is trading at a high earnings multiple relative to near-term earnings growth, suggesting that investors are pricing in optimistic future earnings. Additionally, another tip indicates that while the company has been profitable over the last twelve months, net income is expected to decline this year, and analysts do not foresee profitability within this fiscal year.
Investors interested in a comprehensive analysis and additional InvestingPro Tips, which total seven for Xtant, can explore further at https://www.investing.com/pro/XTNT. To enhance their investing toolkit, users may take advantage of a special offer using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
These insights provide a nuanced perspective on Xtant's financial trajectory and market valuation, complementing the positive outlook presented in the article. The company's ability to maintain positive adjusted EBITDA amid growth challenges showcases resilience, while the InvestingPro metrics and tips serve as a valuable resource for investors seeking a deeper understanding of Xtant's potential.
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