Fresh off of the $34 million acquisition of Estech, AtriCure (NSDQ:ATRC) reported strong sales growth for the 4th quarter and 2013 and predicted even better gains for this year, sending share prices up today on Wall Street.
San Ramon, Calif.-based AtriCure reported preliminary sales of $21.9 million for the 3 months ended Dec. 31, up 19.0% compared with Q4 2012, and full-year preliminary sales of $81.9 million, up 16.7% over 2012.
"We are pleased to report preliminary 4th-quarter and full-year 2013 results which reflect accelerating growth throughout the year and provide a strong platform from which we can continue to build. As we look forward to 2014, we have reason to be excited about our prospects – we are firmly establishing AtriCure as the leader in training and education on atrial fibrillation. Further, we recently strengthened our position through the acquisition of Estech," president & CEO Mike Carrel said in prepared remarks.
AtriCure said it expects 2014 sales to grow 22%-26% to $100 million to $103 million, including a $3 million contribution from Estech.
Adjusted losses before interest, taxes, debt and amortization are pegged at $9 million to $10 million for the full year, including roughly $3.5 million in "transaction-related expenses," according to a press release.
The Q4 revenue numbers beat expectations on Wall Street, which was looking for quarterly sales of $20.2 million. The results, and the boosted guidance, prompted Leerink Swann analyst Danielle Antalffy to raise the investment bank’s price target on ATRC shares from $20 to $25.
"Following a strong 2013, we believe ATRC is well on track to achieve – if not exceed – its 15%+ longer-term revenue growth target through its focus on four key areas: (1) open heart surgical ablation; (2) minimally invasive surgical (MIS) ablation; (3) left atrial appendage; and (4) OUS expansion," Antalffy wrote yesterday in a note to investors. "We reiterate our [outperform] rating and raise our price target to $25 (from $20) as we believe the consistency of beat-and-raise quarters under CEO Mike Carrel warrants a higher multiple."