Myomo (NYSE:MYO) shares took a hit today on fourth-quarter results that missed the consensus forecast for earnings but topped the revenue projections.
The Cambridge, Mass.-based commercial-stage medical robotics company yesterday evening posted losses of $2.8 million, or -$4.81 per share, on sales of $1.5 million for the three months ended Dec. 31, 2019, for a 2.6% bottom-line slide on sales growth of 70.9%.
Adjusted to exclude one-time items, losses per share were also -$4.81, 33¢ behind Wall Street, where analysts were looking for sales of $1.4 million.
“Our financial results for the fourth quarter reflect the important steps we have taken to bring MyoPro to more patients as the only option to improve their upper-extremity functionality and quality of life,” Myomo chairman & CEO Paul Gudonis said in a news release. “Our revenues, stimulated by our new, high-margin, direct-billing channel, grew dramatically. Building on this momentum, we expect to achieve significant revenue growth in 2020 due to the size of the reimbursement pipeline and the growing number of new patient leads we are generating.”
“However, as we typically experience, first quarter 2020 revenue is expected to be lower sequentially and similar to the first quarter of 2019 due to a lower backlog conversion rate in the quarter. Our longer-term target is to reach cash flow breakeven on a quarterly basis by the fourth quarter of 2021.”
Myomo did not offer any updates to its 2020 financial guidance, either for adjusted EPS or for revenue. However, Gudonis said the company expects its Q1 revenue in 2020 to be lower sequentially and similar to that of 2019 due to a lower backlog conversion rate in the quarter.
Gudonis said Myomo’s longer-term target is to reach cash flow breakeven on a quarterly basis by the fourth quarter of 2021.
MYO shares were down -12.4% at $3.76 per share in mid-afternoon trading today.
