CapsoVision Q3 net loss narrows

Overview

• U.S. medical device maker's Q3 revenue rose slightly yr/yr

• Net loss for Q3 narrowed from a year earlier

• Gross margin declined due to higher material costs and inventory charge

Outlook

• Company expects AI Highlights launch to accelerate CapsoCam Plus sales growth, with full impact in 2027

• CapsoVision anticipates clinical expenses to decline after completion of CapsoCam Colon study enrollment

Result Drivers

• GROSS MARGIN PRESSURE - Co said gross margin decline was due to higher material costs, a one-time inventory obsolescence charge, and higher stock-based compensation

• OPERATING EXPENSES - Operating expenses decreased due to expense management and completion of CapsoCam Colon pivotal study

• CAPSOCAM PLUS GROWTH - CapsoCam Plus used by more than 184,000 patients worldwide as of September 30, compared with 151,000 a year earlier

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for CapsoVision Inc is $9.50, about 51.5% above its November 11 closing price of $6.27

Reuters Recommended Reads

• Nov 10 - Opus Genetics Q3 revenue falls and misses analyst estimates

• Nov 10 - Switzerland's Alcon Q3 sales slightly miss estimates despite surgical equipment launches, vision care growth

• Nov 10 - Harvard Bioscience Q3 revenue rises 8%, beats estimates

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(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.)