LivaNova (Nasdaq:LIVN) shares are up today on second-quarter results that topped the consensus forecast.
The London-based company posted profits of $16.4 million, or 30¢ per share, on sales of $254.2 million for the three months ended June 30, 2022, for a massive bottom-line gain out of the red on a sales decline of 3.9%
Adjusted to exclude one-time items, earnings per share were 53¢, a penny ahead of Wall Street, where analysts were looking for sales of $245.5 million.
Revenues in LivaNova’s cardiopulmonary business increased 6.7% year-over-year, driven by oxygenator sales as a result of an increase in cardiac surgery procedures. Neuromodulation sales improved by 0.1%.
Advanced circulatory support revenue decreased 29.6% due to a reduction in patients treated with extracorporeal membrane oxygenation (ECMO) related to fewer severe COVID-19 cases and hospital staffing challenges, partially offset by growth in non-COVID-19 cases, according to a news release.
“We delivered revenue growth in the second quarter, excluding foreign currency headwinds, driven by our Cardiopulmonary and Neuromodulation businesses,” LivaNova CEO Damien McDonald said in the release. “We are committed to executing on our core growth drivers, delivering on our extensive clinical and product pipeline opportunities, and improving profitability and cash generation.”
Based on the company’s first-half performance, McDonald said it forecasts higher full-year revenue growth on the increased demand within its cardiopulmonary business. However, due to the impact of foreign currency and increased supply chain pressures, adjusted earnings and free cash flow projections have been cut.
LivaNova now anticipates adjusted EPS for 2022 to fall in a range between $2.25 and $2.45. The previous projection was for between $2.50 and $2.80. The company expects revenue for 2022 to grow between 4% and 6%.
Shares of LIVN were up more than 1% at $64.43 apiece by midday trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was also up slightly.