What happened
Shares of Vericel (VCEL -2.65%), a healthcare company focused on sports medicine and severe burn care, were up 11% as of 3:08 p.m. EST in the wake of strong third-quarter results.
So what
The key numbers from Varicel's third quarter looked great:
- Revenue rose 36% to $30.5 million. That was well ahead of the $26.8 million in revenue that Wall Street had expected.
- Gross margin expanded 500 basis points to 69%.
- Net income was $3.5 million, or $0.07 per share. That was far better than the $0.02 net loss per share that analysts were expecting.
- Cash balance at quarter-end was $75 million.
The strong Q3 results allowed management to raise its full-year guidance. Revenue is now expected to land between $116 million and $118 million. That's above its previous guidance range of $112 million to $116 million, and also comfortably ahead of the $115.3 million that Wall Street was expecting.
Image source: Getty Images.
Given the beat-and-raise quarter, it's not hard to figure out why the stock is flying high today.
Now what
It was a stellar quarter all around, and investors should be particularly excited by the jump to profitability. With Varicel management clearly executing well and a $2 billion addressable market opportunity ahead, this looks like a great growth stock for healthcare investors to get to know.
