Shares in K2M (NSDQ:KTWO) have fallen in after-hours trading today after the medical device maker missed earnings per share expectations on Wall Street with its 4th quarter and fiscal year 2016 earnings report.
The Leesburg, Va.-based company posted losses of $12.5 million, or 30¢ per share, on sales of $61.8 million for the 3 months ended Dec. 31, with losses growing 46.8% while sales grew 14% compared with the same period last year.
Losses per share were higher than the 27¢ consensus from analysts on Wall Street, though sales topped their consensus of $60.4 million.
K2M posted losses of $41.7 million, or $1 per share, on sales of $236.6 million for the full fiscal year 2016, with losses growing 6.2% while sales grew 9.5% compared with the prior year.
Losses per share were off of analysts expectations as well, with consensus at 97¢ while revenue consensus was at $235.7 million.
“We reported constant currency revenue growth of 14.9% year-over-year in the fourth quarter, driven by U.S. constant currency revenue growth of 21.5% year-over-year. We delivered approximately 17% growth in the U.S. in calendar year 2016 and we believe this strong performance reflects the Company’s success in executing our strategic plan to introduce differentiated spine technologies and expand our global distribution network. Our U.S. growth reflects the clearest indication yet of the increasing adoption of our innovative products by the spine surgeon community.. Outside the U.S., we successfully navigated challenging market disruptions with our distributors in Australia and Japan earlier in 2016, and look forward to building on our improving results during 2017 without the expectation of these headwinds. We continue to anticipate our ability to grow our U.S. revenue in the mid-teens in 2017 with improved profitability,” prez & CEO Eric Major said in a prepared statement.
K2M holdings released guidance for the upcoming year, expecting to see revenue between $263 million and $270 million, with a total net loss of $34 million and $31 million.
Shares have plummeted in after-hours trading, down 10.8% at $19 as of 4:21 p.m. EST.