Xtant Medical misses earnings estimates on revenue shortfall
Medical device maker Xtant Medical reported adjusted EPS of $0.01, below the $0.06 forecast, as revenue declined 11% year-over-year.
Xtant Medical on Monday reported adjusted earnings per share of $0.01 for the second quarter, missing Wall Street estimates by $0.05. Revenue totaled $11.2 million, down 11% from $12.6 million in the same period last year and below the $12.1 million projected by analysts.
The medical device manufacturer attributed the revenue decline to lower sales of its core spinal and orthopedic products, as well as supply chain constraints that limited production capacity. Gross margin contracted to 42% from 48% a year earlier, reflecting higher material and labor costs.
Xtant Medical maintained its full-year guidance, reaffirming revenue of $48 million to $52 million and adjusted EBITDA of $8 million to $10 million. The company also announced plans to reduce non-essential spending amid ongoing macroeconomic headwinds.
Shares of Xtant Medical were down 5% in after-hours trading following the report. The stock has declined about 12% over the past three months, underperforming the broader healthcare sector.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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