The Leesburg, Va.-based company said it expects to see revenue of $62.7 million for the quarter, lower than the $66.6 million consensus from analysts on Wall Street.
K2M did not release any details of its expected earnings per share for the quarter, but updated its guidance for the fiscal year, expecting to see revenue between $255 and $257 million.
“Our preliminary revenue results for the third quarter of 2017 reflect expected total revenue growth of approximately 6% year-over-year on both a GAAP and constant currency basis. Our preliminary third quarter revenue performance was driven by slower than planned acceleration of new distribution in the U.S., disruption of account activity and canceled procedures related to the hurricanes in Texas, Florida and, to a lesser extent, Puerto Rico, in early September. Third quarter deformity trends were strong in July and August and we experienced strong headwinds in September. U.S. sales growth in our degenerative procedure category continued to be fueled by our new product introductions including our industry-leading 3D-printed portfolio, offset partially by modestly weaker procedure volumes as compared to last year. We have updated our fiscal year 2017 revenue guidance to reflect the softer sales performance in the third quarter and a full quarter impact of new distribution in the U.S. during first nine month of the year. The updated fiscal year revenue guidance range also reflects an estimated $2.0 million impact in related disruptions from the hurricanes – the majority of which was sustained in the third quarter. We remain confident in our ability to drive above-market growth in the U.S., fueled by our focus on introducing new and innovative spinal implant solutions to help surgeons care for patients around the world who suffer from debilitating spinal pathologies,” prez & CEO Eric Major said, according to an SEC filing.
After releasing the preliminary earnings on Monday, K2M saw shares stay steady, opening at $17.82 and closing 5¢ down.
Last month, K2M said it launched its Everest minimally invasive XTower instrumentation designed to work with its Everest MI XT spinal system.