LivaNova (Nasdaq: LIVN) shares got a boost today on fourth-quarter results that came in well ahead of the consensus forecast.
Shares of LIVN ticked up nearly 9% at $57.28 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was down 0.4%.
The London-based medtech company posted profits of $16.3 million, equaling 30¢ per share. It recorded sales of $310.1 million for the three months ended Dec. 31, 2023. LivaNova increased its bottom line more than eight-fold on sales growth of 12.8%.
Adjusted to exclude one-time items, earnings per share 87¢, landing 10¢ ahead of Wall Street projections. Sales also topped the forecasts as analysts expected $287.1 million in revenue.
LivaNova’s cardiopulmonary business led the way with 18.7% growth, followed by neuromodulation at 7.7% clip. The company singled out the sales of its Essenz perfusion system as a significant driver for cardiopulmonary sales. Advanced circulatory support grew by 5%.
The company’s strong financial performance coincides with some major operational shifts over the past several months. LivaNova announced last month that it planned to wind down that ACS unit. In connection with that move, the company reported a 137-person workforce reduction in Pennsylvania. Meanwhile, it also appointed a new CEO — Johnson & Johnson MedTech veteran Vladimir A. Makatsaria.
“We delivered strong revenue growth in both the fourth quarter and full year,” said Bill Kozy, interim CEO and board chair of LivaNova. “Our 2023 performance reflects double-digit revenue growth across all regions… We are pleased with these financial outcomes as well as the progress made in refining the business strategy and portfolio.”
LivaNova expects full-year sales to grow by 4%-5% year-over-year. Excluding the ACS wind down, it forecasts 6%-7% growth. The company projects adjusted EPS in the range of $2.95 to $3.05.