TELA Bio Q3 revenue misses analyst estimates on lower OviTex PRS volumes

Overview

• US soft-tissue reconstruction firm's Q3 revenue fell 8% yr/yr, missing analyst expectations

• Adjusted loss per share for Q3 beat analyst expectations

• Company launched cost reduction plan to lower annual expenses and extend cash runway

Outlook

• Company expects cost reduction initiative to extend cash runway into 2028

Result Drivers

• PRODUCT MIX - Co said lower OviTex PRS volumes drove revenue decline, partly offset by international sales growth

• COST REDUCTION INITIATIVE - Co said cost cuts reduced operating loss and adjusted EBITDA loss sequentially

• INVENTORY CHARGES - Co said higher charges for excess and obsolete inventory reduced gross margin

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for TELA Bio Inc is $2.00, about 131.3% above its November 9 closing price of $0.86

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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.)