AtriCure (Nasdaq: ATRC) shares dipped today despite fourth-quarter results that came in ahead of the consensus forecast.
Shares of ATRC fell 2.8% at $33.25 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose 0.7%.
The Mason, Ohio-based company posted losses of $9.8 million. That equals 21¢ per share on sales of $106.5 million for the three months ended Dec. 31, 2023. AtriCure recorded a bottom-line slide deeper into the red despite sales growth of 21%.
Losses per share of 21¢ came in 2¢ ahead of expectations on Wall Street. Sales topped projections of $103.7 million in revenue as well.
The company highlighted growth drivers including sales for its EPi-Sense, AtriClip Flex V, Encompass clamp and cryoSphere probe. With a more than 20% revenue uptick from the fourth quarter of last year, the company also posted 8.4% growth in sequential quarters.
Growth is especially impressive for AtriCure, given some concerns over its place in the left atrial appendage (LAA) market. Medtronic last year launched the Penditure left atrial appendage (LAA) exclusion device, adding another system to a competitive space. AtriCure, Abbott and Boston Scientific all offer LAA devices, while Johnson & Johnson MedTech just made its own play in the market.
“Our 2023 results showcase the broad-based expansion of our many growth drivers, balanced by disciplined investments as we make progress towards sustained profitability,” said Michael Carrel, president and CEO at AtriCure. “We begin 2024 with strong momentum throughout our business and an unwavering focus on advancing innovation, clinical science and therapy awareness as we establish new standards of care for patients globally.”
AtriCure set its 2024 full-year revenue guidance for between $459 million and $466 million. That would reflect growth between 15% and 17% compared to 2023. It projects full-year adjusted losses per share to range between 74¢ and 82¢.
The analysts’ view on AtriCure
BTIG analysts Marie Thibault and Sam Eiber maintained a “Buy” rating for AtriCure.
They said they like the company’s high-growth products in underpenetrated markets across each of its portfolios. The analysts also see an opportunity to increase physician adoption through new product introduction and expansions.
“While some concern over a competitive entrant in the Flex-V business is warranted, we think ATRC’s high-touch and expert field team, leadership position in the epicardial ablation market, the Flex Mini debut late this year, and innovation cadence will enable them to maintain much of its market share,” they wrote.