What happened
Shares of Paragon 28 (FNA -0.82%) were jumping 13.1% as of 3:20 p.m. ET on Wednesday. The gain came after the medical device maker announced its fourth-quarter results following the market close on Tuesday.
Paragon 28 reported net revenue of $42.8 million in the fourth quarter of 2021, up 22% year over year. The company posted a net loss in the fourth quarter of $6.2 million, or $0.08 per share. Both top- and bottom-line numbers were in line with the consensus estimates.
But investors were even more excited about Paragon's 2022 outlook. The company expects 2022 net revenue between $167 million and $171 million. This range reflects 13% to 16% growth compared to 2021. It's also above the average analysts' 2022 revenue estimate of $163.1 million.
So what
Although Paragon 28's revenue improved significantly in the fourth quarter, its bottom line didn't. The company recorded a loss in the fourth quarter but generated a profit in the prior-year period. As a result, Paragon's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also plunged to $112,000 from $6.28 million in the fourth quarter of 2020.
However, investors are always more focused on the future than they are on the past. Paragon 28's better-than-expected 2022 revenue guidance was rightfully viewed as more important than its fourth-quarter results.
Image source: Getty Images.
Now what
Paragon 28 focuses on medical devices for the foot and ankle orthopedic market. The COVID-19 pandemic has served as a headwind for this market. What happens next with COVID will be important to the company's fortunes.