Procept BioRobotics shares surged Monday — retaking their 50-day line — after the robotic surgery player beat September-quarter expectations and hiked its outlook.
The San Jose, Calif.-based company reported $58.4 million in sales. Sales skyrocketed 66% vs. the year-earlier period and beat forecasts for $53.3 million, according to FactSet. Procept makes robotic surgery systems that perform aquablation. Aquablation is a minimally invasive procedure to treat benign prostatic hyperplasia, or BPH. The condition is also called an enlarged prostate.
Losses continued but were narrower-than-expected at 40 cents per share. That decreased from a per-share loss of 51 cents in the same three months last year.
"Overall, there is not much to pick at in third-quarter results, which we think reinforces the strong underlying demand for aquablation," William Blair analyst Brandon Vazquez said in a report to clients.
Procept BioRobotics shares bounded 32.3% to 91. Shares closed well above their 50-day line after undercutting that key mark earlier this month.
Procept BioRobotics Touts Consumables Growth
Procept said it placed 45 new aquablation systems in the U.S. during the quarter, up 18% and above expectations for 42 systems, Vazquez said. One-time use handpiece and consumables sales surged 74% to $29.6 million.
"This was an encouraging update given management commentary around the potential for procedure disruptions as the sales force was pulled off the field to be trained on the new Hydros system," he said. Hydros is Procept BioRobotics' next-generation aquablation system.
The company boosted its sales outlook for the year to $222.5 million to $223 million, up from an earlier midpoint of $217 million. Procept BioRobotics also now expects a gross margin of 61% and adjusted earnings before interest, taxes, amortization and depreciation loss of $60 million.
Vazquez kept his outperform rating on the robotic surgery stock.
"With the company's U.S. market we estimate only 10% penetrated exiting 2024, another quarter of impressive utilization growth (we estimate +7% but need additional color on the call), new system launch in Hydros, improving profitability, and upcoming prostate cancer catalysts, we continue to like the setup for upside," he said.
Notably, Procept BioRobotics stock has a strong IBD Digital Relative Strength Rating of 95. This means shares rank in the top 5% of all stocks when it comes to 12-month performance.
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