Vericel (VCEL) Stock: Flying On Strong Earnings

Vericel Corp (NASDAQ: VCEL) is having an overwhelmingly strong day in the market today, and for good reason. The company announced its earnings for the fourth quarter, blowing away expectations and leading to excitement among investors. Of course, the stock is flying this morning as a result. Today, we’ll talk about what we saw from the earnings report, what we’re seeing from the stock, and what we’ll be watching for with regard to VCEL ahead.

VCEL Reports Strong Earnings

As mentioned above, Vericel is having an overwhelmingly strong start to the trading session in the pre-market hours this morning, and for good reason. The company reported its earnings for the fourth quarter, beating expectations. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, VCEL definitely did not disappoint. During the quarter, analysts expected that the company would report a loss in the amount of $0.07 per share. However, the company actually reported earnings per share in the amount of $0.01, coming in well ahead of expectations.
  • Revenue – Revenue also proved to be overwhelmingly positive. During the fourth quarter, analysts expected that the company would generate revenue in the amount of $18.8 million. However, the company actually announced revenue in the amount of $23.4 million, once again blowing away expectations.

In other news, VCEL announced that it has entered into an agreement with a world champion swimmer, best-selling author, five time Olympian and recent MACI patient, Dara Torres. The two will be teaming up for a campaign that it is calling “It’s Your Move.” Ultimately the campaign is aimed at active individuals who are sidelined from their favorite activities as a result of knee pain caused through cartilage injury. Ultimately, the campaign seeks to better help these individuals better understand their medical condition as well as seek treatment. In a statement.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In general, earnings announcements have the ability to cause wide swings in value as investors are ultimately making decisions based on outdated financial information. So, earnings reports are the source of the most updated info and are watched by the masses. So, with strong earnings, and an extra boost from the announcement of Dara Torres teaming up with the company, it’s no surprise that we’re seeing strong gains in the value of the stock. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:07), VCEL is trading at $9.05 per share after a gain of $0.70 per share or 8.38% 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, we’re interested in following the story surrounding the company’s continued growth, and following the growth in sales as Dara Torres joins the team. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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