Silk Road Medical's Q2 Margins Hit By Manufacturing Expansion Costs

Silk Road Medical Inc SILK posted Q2 revenue of $33.2 million, an increase of 25% Y/Y, driven primarily by increased TCAR adoption, beating the consensus of $31.16 million.
"We expanded our FDA label and Medicare coverage for the use of TCAR in standard surgical risk patients, formally initiated our ROADSTER 3 post approval study, and secured access to a $250 million debt facility," said Erica Rogers, CEO
"We also gained meaningful market share through strong physician utilization as we continue to establish TCAR as the minimally-invasive standard of care in stroke prevention, evidenced by recently eclipsing 50,000 global TCAR procedures," Rogers added.
Gross margin declined to 73% from 75%, impacted by continued manufacturing expansion costs at the new Minnesota facility.
EPS loss reached $(0.44) compared to $(0.31) a year ago, beating the consensus of $(0.46).
Guidance: Silk Road Medical projects FY22 revenue of $128 million - $133 million versus the consensus of $129.32 million.
Price Action: SILK shares traded 2.13% higher at $44.06 on the last check Wednesday.