Please ensure Javascript is enabled for purposes of website accessibility

Why Sientra Stock Is Soaring Today

By Prosper Junior Bakiny - Feb 5, 2021 at 1:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company released preliminary results for its fourth quarter.

What happened?

On Thursday, medical aesthetic products manufacturer Sientra (SIEN -2.34%) reported preliminary results for its fourth quarter and full-year 2020. They were enough to impress investors, and as a result, the company's stock is rising sharply on Friday. As of 1:08 p.m. EST, Sientra's shares are up by 16.1%, after jumping by as much as 31.7% earlier in the day.

So what

For its fourth quarter ending Dec. 31, 2020, Sientra expects to report net sales of $22.6 million. And while that represents a 2% year-over-year decrease, let's not forget that the company has faced significant headwinds because of the pandemic. The average analyst forecast for Sientra's net sales for the fourth quarter is $16.83 million, meaning the company's top line will likely exceed expectations. Sientra has its breast aesthetics products to thank for that.

Patient and doctor inspecting silicone breast implant

Image source: Getty Images.

For the fourth quarter, net sales from the company's breast products segment will be about $17.9 million, the highest net sales figure it has ever recorded for this segment and a 40% increase compared with the year-ago period. The healthcare company also thinks it will record $71 million in net sales for the fiscal year 2020, above its previous guidance of between $63 million and $66 million. It is also above the $65.43 million analysts are expecting on average.

Now what

Even after today's rally, Sientra's stock is still down by 4.1% over the past 12 months, largely due to obstacles caused by the outbreak. Given the sneak peek the company gave us today, its shares could soar even more when it releases its full fourth quarter and fiscal year 2020 financial results in early March.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Sientra, Inc. Stock Quote
Sientra, Inc.
SIEN
$1.25 (-2.34%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.