Shoulder Innovations (SI +32.04%) stock is surging higher in Wednesday's trading. The company's share price had risen 28.2% in the daily session as of 2:20 p.m. ET and had been up as much as 36.4% earlier in the day's trading.
After the market closed yesterday, Shoulder Innovations published its third-quarter results. In addition to posting sales that came in ahead of Wall Street's target, the medical technology company also raised its full-year revenue guidance.
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Shoulder Innovations soars on Q3 sales beat
Shoulder Innovations' revenue surged roughly 58% higher year over year to hit $11.76 million in the third quarter. The performance beat the average Wall Street analyst estimate by $1.89 million. While that level of beat might not look like much on a pure-dollar basis, it represents a dramatic outperformance on a relative basis. While the company's net loss of $0.64 per share came in $0.26 per share higher than called for by the average analyst estimate, investors have been more than happy to overlook the miss in light of sales results that came in far ahead of expectations.
NYSE: SI
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What's next for Shoulder Innovations?
In conjunction with its Q3 report, Shoulder Innovations raised its full-year sales outlook. The company now expects its sales for the year to be between $45 million and $46 million -- up from previous guidance for revenue between $42 million and $44 million. At the midpoint of its new guidance range, the company is targeting annual revenue growth of approximately 43.5%. With sales growth now accelerating again, investors are showing willingness to pay higher valuation multiples to own a piece of the company.
