The Leesburg, Va.-based company posted losses of $11.4 million, or 26¢ per share, on sales of $67.9 million for the three months ended March 31, seeing losses grow 4.8% while sales grew 9.7% compared with the same period during the previous year.
K2M’s 26¢ per share losses were just behind the 22¢ consensus on Wall Street, where analysts were expecting to see sales of $65.8 million.
“Our first quarter total revenue growth of approximately 10% year-over-year reflect solid trends in the U.S. and stronger-than-expected demand in international markets. We delivered approximately 8% growth in the United States in Q1—at the high-end of our growth expectations—driven by solid execution against our strategic goal of increasing market share by introducing new and innovative spinal implant solutions like our first-of-its-kind Mojave PL 3D expandable interbody system featuring Lamellar 3D titanium technology and our Yukon OCT spinal system that can be used with the Palo Alto cervical static corpectomy cage system, the first and only static corpectomy cage in the world to receive a cervical 510(k) clearance. We have increased our fiscal year 2018 revenue guidance expectations to a new range of $283 million to $287 million based on our improved revenue outlook for Spain. We remain confident in our ability to drive above-market growth in the U.S., fueled by our continued focus on leading the spine market by 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 in a prepared statement.
The company updated its guidance for the rest of the year, expecting to see sales of between $283 million and $287 million, up from previous guidance of between $280 million and $284 million.
K2M said it expects to post a net loss of between $34 million and $30 million, with adjusted EBITDA benefit between $4 million and $8 million.
Shares in K2M have risen 6.8% so far today, at $20.08 as of 11:24 a.m. EDT.