In response to reporting upbeat first-quarter earnings, shares of ArtiCure (NASDAQ:ATRC), a medical device maker focused on cardiovascular products, rose more than 10% as of 11:45 a.m. EST on Friday.
Here's a look at the headline numbers that lead to Friday's price action:
- Revenue grew 15% to $41.3 million. This figure compared favorably to the $40.3 million in revenue Wall Street had expected.
- U.S. revenue grew by 18%, while international sales increased just 4%.
- Gross margin expanded by 60 basis points year over year to 72.7%.
- Net loss was $10.2 million, or $0.32 per share. This result also came in ahead of the $0.35 loss analysts had predicted.
- Cash balance at quarter end was $34.5 million.
The better-than-expected quarterly results caused traders to cheer.
Looking ahead, management reiterated its full-year 2017 guidance, which calls for revenue to land between $175 million to $178 million. That represents top-line growth of approximately 13% to 15% year over year. Turning to the bottom line, the company expects to produce a net loss in the range of $0.94 to $1.04 per share.
While the markets are applauding ArtiCure's results, it's worth pointing out that the company continues to bleed capital and is expected to do so for the near future. Given that its cash balance is getting low, it's possible the company might be forced to tap shareholders for extra cash in the not-too-distant future. For that reason, I'd suggest to potential shareholders that they simply monitor this company's progress from the sidelines.
More from The Motley Fool
Why AtriCure, Inc. Shares Surged
AtriCure updates its preliminary fourth-quarter and 2014 full-year guidance, but this is really what shareholders should be watching.
Why AtriCure Inc. Shares Jumped
Shares of AtriCure soar after it tops earnings expectations in the third-quarter. Can shares head even higher or are they now overvalued?
What to Expect from AtriCure