LENSAR Q3 revenue slightly misses estimates on slower surgical scheduling 

Overview

• Medical laser device maker's Q3 revenue declined 1% yr/yr, slightly missing analyst expectations

• Recurring revenue grew 17% yr/yr to $12.6 mln, now 89% of total revenue

• Company attributes revenue decline to summer seasonality and lower system sales

Outlook

• Company did not provide specific financial guidance for the current quarter or full year

Result Drivers

• SEASONALITY - Co said summer holidays and vacations led to slower surgical scheduling and purchasing decisions, contributing to sequential revenue decline

• LOWER SYSTEM SALES - Co attributed lower yr/yr revenue to fewer system sales compared to prior year period, despite growth in procedure volume and recurring revenue

• PROCEDURE VOLUME GROWTH - Co said procedure volume grew 12% yr/yr, supporting recurring revenue growth

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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"

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

• Wall Street's median 12-month price target for LENSAR Inc is $11.00, about 101.5% above its November 9 closing price of $5.46

Reuters Recommended Reads

• Nov 9 - Medical tech firm NeurAxis' Q3 revenue jumps on broader insurance coverage

• Nov 9 - Hyperfine Q3 revenue jumps on higher system sales; net loss narrows

• Nov 9 - Oncology firm Delcath Systems' Q3 revenue beats on Hepzato growth

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.)