Establishment Labs (NASDAQ:ESTA) Shares Gap Down After Earnings Miss

Key Points

• Establishment Labs saw its shares drop significantly, opening at $38.22 after closing at $41.79, due to disappointing earnings results.
• The company reported a loss of ($0.57) earnings per share, missing analysts' expectations by $0.03, even though revenue was up 16.1% year-over-year.
• Despite recent challenges, analysts maintain a Moderate Buy rating for the stock, with a consensus target price of $54.83.

Establishment Labs Holdings Inc. (NASDAQ:ESTA - Get Free Report)'s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $41.79, but opened at $38.22. Establishment Labs shares last traded at $38.13, with a volume of 181,965 shares changing hands.

The company reported ($0.57) earnings per share for the quarter, missing analysts' consensus estimates of ($0.54) by ($0.03). The company had revenue of $51.30 million during the quarter, compared to the consensus estimate of $50.80 million. Establishment Labs had a negative net margin of 49.89% and a negative return on equity of 224.34%. The business's quarterly revenue was up 16.1% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.62) EPS.

Analyst Upgrades and Downgrades

ESTA has been the topic of several research reports. Wall Street Zen upgraded shares of Establishment Labs from a "sell" rating to a "hold" rating in a report on Saturday, July 26th. Citigroup increased their target price on shares of Establishment Labs from $38.00 to $47.00 and gave the stock a "neutral" rating in a report on Wednesday, July 9th. Needham & Company LLC reissued a "buy" rating and set a $48.00 target price on shares of Establishment Labs in a research report on Friday, June 13th. BTIG Research initiated coverage on shares of Establishment Labs in a research report on Friday, May 16th. They set a "buy" rating and a $62.00 price objective for the company. Finally, Mizuho lifted their price target on shares of Establishment Labs from $58.00 to $70.00 and gave the company an "outperform" rating in a research report on Wednesday, July 16th. Two analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $55.80.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Quarry LP purchased a new position in shares of Establishment Labs during the fourth quarter worth about $27,000. ANTIPODES PARTNERS Ltd bought a new position in shares of Establishment Labs during the first quarter valued at approximately $81,000. CWM LLC raised its holdings in Establishment Labs by 45.9% in the second quarter. CWM LLC now owns 2,182 shares of the company's stock worth $93,000 after purchasing an additional 686 shares in the last quarter. Elevation Point Wealth Partners LLC purchased a new stake in shares of Establishment Labs in the first quarter worth $207,000. Finally, Patriot Financial Group Insurance Agency LLC purchased a new stake in shares of Establishment Labs during the first quarter valued at $234,000. Hedge funds and other institutional investors own 72.91% of the company's stock.

Establishment Labs Price Performance

The company has a market capitalization of $990.57 million, a PE ratio of -11.26 and a beta of 0.83. The company has a debt-to-equity ratio of 9.71, a current ratio of 2.84 and a quick ratio of 1.67. The firm has a 50-day moving average of $40.82 and a 200 day moving average of $37.00.

About Establishment Labs

Establishment Labs Holdings Inc, a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander.