Surgical Robotics Provider PROCEPT BioRobotics' Q3 Earnings Beats Street View, Analyst Optimistic About Upside Potential

PROCEPT BioRobotics PRCT stock is trading on Monday after the company released better-than-expected third-quarter earnings.

The company reported EPS loss of $(0.40), down from $(0.51) a year ago, beating the consensus loss of $(0.49).

The surgical robotics company reported third-quarter sales of $58.4 million, up 66.3% year-over-year, beating the consensus of $53.18 million.

The increase was primarily driven by increased system sales, higher average selling prices, and increased handpiece and other consumable revenue.

U.S. handpiece and consumable revenue for the third quarter of 2024 was $29.6 million, an increase of 74% year over year.

William Blair says the update was promising, especially considering management’s remarks on the possibility of procedural disruptions due to the sales team being temporarily removed from the field for training on the new Hydros system.

U.S. system revenue for the third quarter of 2024 was $19.6 million, an increase of 46%.

As of September 30, the install base of robotic systems in the U.S. was 445 systems.

Gross margin for the third quarter was 63.2% compared to 53.8% a year ago, primarily due to improved overhead absorption and increased U.S. robotic system average selling prices.

Guidance: PROCEPT BioRobotics projects 2024 revenue of $222.5 million—$223 million, up from prior guidance of $217 million and consensus of $217.06 million.

The company projects a 2024 gross margin of approximately 61%, up from prior guidance of approximately 59%.

PROCEPT projects a full-year 2024 adjusted EBITDA of ($60.0) million compared to the previous guidance of ($67.5) million.

William Blair says, “Overall, there is not much to pick at in third-quarter results, which we think reinforces the strong underlying demand for Aquablation.”

With the company’s U.S. market projected to reach only 10% penetration by the end of 2024, alongside strong utilization growth estimated at 7%, a new system launch in Hydros, improving profitability, and potential catalysts in prostate cancer treatment, the analyst remains optimistic about the upside potential.

William Blair reiterates the Outperform rating.

Price Action: PRCT stock is up 28.50% at $88.36 at the last check on Monday.

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