NxStage reported expected 4th-quarter sales of $69 million, beating its own $67.0 million to $68.5 million guidance and The Street’s $67.8 million consensus for the 3 months ended Dec. 31, 2013.
Investors reacted by adding 8.1% to NXTM’s share price as of about 11:20 a.m. today, sending it up to the $12.24 mark.
"As a result of continued traction with our strategic growth initiatives, home revenue increased slightly ahead of our expectations in the quarter and we continue to target 15% annual revenue growth in the home in 2014," founder & CEO Jeffrey Burbank said in prepared remarks. "We also delivered solid revenue growth across our other businesses consistent with our guidance, and ended the year with over $80 million in cash."
NxStage said the results included a 12% spike in sales of its home hemodialysis System One device, according to a press release. Leerink Partners analyst Danielle Antalffy said that makes Q4 2013 the medical device company’s strongest home hemodialysis showing in 11 quarters.
"We view today’s announcement as an encouraging start to management repairing credibility with the street through improving execution, and we expect additional beat and raise quarters to drive the stock higher throughout 2014," Antalffy wrote in a note to investors yesterday.
Full-year sales are forecast to be roughly $263 million, again beating NxStage’s own prediction of $261.0 million to $262.5 million, with home hemodialysis sales reaching the top end of the guidance at 7.5%, according to a press release. Net losses are expected to be between $5 million and $6 million for the quarter and $18.5 million to $19.5 million for 2013, according to the release.