Silk Road Medical Inc (SILK) reported better than expected earnings this afternoon for Q4 2022.
Wall Street earnings per share (EPS) projections for Silk Road Medical Inc were at a loss of $0.38 per share. The company beat those estimates with an EPS loss of $0.34 per share. The loss of $0.34 per share (which represents a -11% EPS surprise) led to the company’s profits rising 19% compared to last year when the firm reported an EPS loss of $0.42 per share. The increase in Silk Road Medical Inc’s annual growth rate represents how the business is performing well amid recent economic conditions.
Consensus analyst estimates were at $37.4 million. The Healthcare company managed to surpass those expectations for its fourth quarter with revenue of $40.1 million, a positive revenue surprise of $2.7 million (7%). The firm managed 42% growth year-over-year due to Silk Road Medical Inc reporting quarterly revenue of $28.3 million in its year-ago quarter. Silk Road Medical Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.
The stock is down 7.57% to $48.98 after the report.
The firm’s higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.
The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.
Trading in the five days leading up to the report earned Silk Road Medical Inc a Bullish Sentiment Rank from InvestorsObserver.
Silk Road Medical Inc has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 95, putting Silk Road Medical Inc in the top 25% of stocks. The firm was recently trading at a 52-week high of $58.04 on January 13, 2023 and set a 52-week low on May 12, 2022 at $27.3.
Silk Road Medical Inc is a medical device company focused on reducing the risk of stroke and its devastating impact. The company has a new approach for the treatment of carotid artery disease called transcarotid artery revascularization, or TCAR, which it seeks to establish as the standard of care. TCAR relies on two novel concepts – minimally-invasive direct carotid access in the neck and high-rate blood flow reversal during the procedure to protect the brain – and combines the benefits of innovative endovascular techniques with fundamental surgical principles. TCAR using its portfolio of products has been clinically demonstrated to reduce the upfront morbidity and mortality risks commonly associated with carotid endarterectomy while maintaining a reduction in long-term stroke risk.