Vericel Corp (NASDAQ: VCEL) is having an incredibly strong start to the trading session this morning, and for good reason. Just minutes ago, the company reported its financial results for the fourth quarter and full year. Today, we’ll talk about
- The results;
- what we’re seeing from VCEL stock as a result; and
- what we’ll be watching for ahead.
VCEL Announces Financial Results
As mentioned above, Vericel is having a great start to the trading session this morning, and for good reason. The company announced its financial results for the first quarter, and full year, showing exceptional growth. Here’s what we saw from the report:
- Net Revenue – During the fourth quarter, net revenue came in at $31.3 million. That’s a growth rate of 41% over the $22.2 million reported in the fourth quarter of 2017.
- Gross Margin – Gross margins are growing as well. During the quarter, gross margins came in at 72%. That’s impressive growth over the 64% reported last year.
- Net Income – Net income is also climbing. During the quarter, net income came in at $5.2 million, working out to $0.11 per share. In the same quarter last year, the company reported net income of $0.3 million or $0.01 per share.
- Non-GAAP Adjusted EBITDA – Finally, Non-GAAP adjusted EBITDA came in at $7.7 million. In the same quarter last year, this figure came in at $2.2 million.
- Net Revenue – Net revenue came in at $90.9 million, representing growth of 45% over the $62.8 million reported a year ago.
- Gross Margin – Gross margins rose on a full-year basis as well. The figure came in at 65%, comparing well to the 53% gross margin reported for 2017.
- Net Loss – Net losses for the year came to $8.1 million or $0.20 per share. That’s far better than the net loss of $17.3 million or $0.52 per share reported one year ago.
- Non-GAAP Adjusted EBITDA – Finally, Non-GAAP adjusted EBITDA came in at $4.7 million. In the year 2017, that figure came in at a loss of $9.4 million.
In the 2019 year, the company is expecting for net revenue to come in between $108 million and $112 million. Margins are also expected to continue on the upward trend, with a goal of 80%.
In a statement, Nick Colangelo, President and CEO at VCEL, had the following to offer:
We delivered record fourth quarter and full-year revenues and gross margins, and reported full-year positive adjusted EBITDA for the first time in the company’s history. Based on MACI’s performance in 2018 and the feedback that we are receiving from surgeons and patients, it is clear that MACI is filling what has been a large unmet need in the cartilage repair market, and we expect continued strong revenue and profit growth in 2019.
What We’re Seeing From the Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Vericel, the news proved to be overwhelmingly positive. After all, the report outlines strong growth throughout the 2019 year and sets the stage for more of the same this year.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (7:24), VCEL is trading at $21.25 per share after a gain of $1.25 per share or 6.25% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VCEL. In particular, were interested in following the continued growth of the company as 2018 proved to be a great year and 2019 is expected to be better. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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