Surgical robotics firm Stereotaxis' Q3 revenue rises, but misses estimates

Overview

• US surgical robotics firm's Q3 revenue rose 20% yr/yr but missed analyst expectations

• System revenue grew 60% yr/yr, driven by new Genesis and Synchrony system sales

• Company announced $24 mln convertible note financing to boost liquidity

Outlook

• Company expects growing recurring revenue and more consistent capital sales in coming qtrs

• Stereotaxis expects adjusted operating expenses to approximate $8 mln per qtr going forward

• Company says revenue growth and stable expenses may lead to cash-flow profitability within next yr

Result Drivers

• NEW SYSTEM SALES - Co said system revenue growth was driven by GenesisX and Genesis system sales in US and China, and Synchrony digital operating room systems

• CATHETER SALES - Co said recurring revenue benefited from new robotically-navigated catheter portfolio, but was limited by supply shortages

• LOW PRODUCTION VOLUME - Co said gross margins were affected by fixed overhead costs spread over low production volume

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Stereotaxis Inc is $3.00, about 163.2% above its November 9 closing price of $1.14

Reuters Recommended Reads

• Nov 9 - Surgery Partners Inc Q3 revenue misses estimates

• Nov 10 - LENSAR Q3 revenue slightly misses estimates on slower surgical scheduling

• Nov 9 - Myomo Q3 revenue rises 22% to record high

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)