Vericel Corp (NASDAQ: VCEL) is flying early on in the trading session this morning fter reporting its earnings for the third quarter. Considering the response to the report in the market, it’s clear to see that the company did well in the eyes of investors. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from VCEL stock as a result; and
- what we’ll be watching for ahead.
VCEL Reports Earnings
As mentioned above, Vericel is having a great start to the tading session in the pre-market hours this morning after reporting its earnings for the third quarter. Here’s what we saw from the report:
- Revenue – In terms of revenue, VCEL did overwhelmingly well. During the third quarter, the compny generated revenue in the amount of $22.5 million. That’s a growth rate of 58% year over year from the $14.3 million reported in the third quarter of 2017.
- Net Loss – During the quarter, the company generated a net loss of $1.1 million. That works out to about $0.02 per share. This figure also saw strong year over year growth. In the third quarter of 2017, the company reported a net loss of $5.4 million or $0.16 per share.
- Gross Margins – Gross margins also saw strong growth, climbing from 50% in the third quarter of 2017 to 64% in the third quarter of this year.
- Guidance – Finally, the company decided to update its guidance. Now, the company is expecting to generate 2018 revenue in the range between $87 and $90 million. Previously, the company ws expecting for full year revenue to come in between $80 and $83 million.
In a sttement, Nick Colangelo, President and CEO at VCEL, had the following to offer:
We achieved record third quarter revenues and our consistently strong revenue growth has generated significant improvements in gross margins, profitability and cash flow… Based on the strength of our performance year to date and the continued momentum in MACI uptake, we have raised our full year 2018 revenue guidance and plan to further expand the MACI sales force to meet an expanded addressable market.
Wht 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 positive. After all, the company’s financial growth is incredibly strong, and that’s just hat investors want to see. So, it’s not surprising to see that excited investors are pushing the stock toward the top in the market this morning. At the moment (7:42), VCEL is trading at $12.69 per share after a gain of $1.15 per share or 9.97% 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 financial growth, as well as the company’s continued work to expand the MACI sales for and execute on sales. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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