Carlsmed (NASDAQ:CARL) Shares Gap Up After Strong Earnings

Key Points

• Carlsmed shares surged after the company reported a quarterly loss of $0.34 per share, narrower than analysts’ expected $0.42 loss; the stock opened at $16.00 versus its prior close of $14.71.
• Third-quarter revenue rose 65% year over year to about $21.6 million, and analysts at BTIG, Truist and Needham raised their price targets while maintaining Buy ratings.
• Carlsmed remains unprofitable, with a negative net margin of 57.42%; sustained growth and progress toward profitability remain key risks for investors.

Carlsmed, Inc. (NASDAQ:CARL - Get Free Report)'s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $14.71, but opened at $16.00. Carlsmed shares last traded at $18.4330, with a volume of 414,094 shares traded.

The company reported ($0.34) earnings per share for the quarter, beating the consensus estimate of ($0.42) by $0.08. The business had revenue of $21.55 million during the quarter. Carlsmed had a negative net margin of 57.42% and a negative return on equity of 38.06%.

Carlsmed News Roundup

Investors following CARL have been watching these news items:

• Positive Sentiment: Third-quarter revenue rose 65% year over year to $21.6 million, while the loss of $0.34 per share was narrower than analysts’ expected $0.42 loss. Carlsmed Q3 results and guidance
• Positive Sentiment: Analysts raised their targets and maintained Buy ratings following the results: BTIG to $26 from $24, Truist to $23 from $20, and Needham to $22 from $17. Analyst target increases
• Negative Sentiment: The company remains unprofitable, reporting a quarterly loss despite beating the consensus estimate; continued growth and progress toward profitability remain important risks for investors.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Truist Financial raised their target price on shares of Carlsmed from $20.00 to $23.00 and gave the company a "buy" rating in a research note on Wednesday. Needham & Company LLC upped their price objective on Carlsmed from $17.00 to $22.00 and gave the company a "buy" rating in a research note on Wednesday. Wall Street Zen upgraded Carlsmed from a "sell" rating to a "hold" rating in a research note on Saturday, August 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of Carlsmed in a report on Wednesday, November 4th. Finally, BTIG Research increased their price target on Carlsmed from $24.00 to $26.00 and gave the company a "buy" rating in a research note on Wednesday. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $22.00.

Institutional Trading of Carlsmed

Several institutional investors have recently added to or reduced their stakes in the company. Zevenbergen Capital Investments LLC lifted its holdings in shares of Carlsmed by 50.4% during the third quarter. Zevenbergen Capital Investments LLC now owns 17,900 shares of the company's stock worth $252,000 after buying an additional 6,000 shares in the last quarter. Deutsche Bank AG bought a new position in Carlsmed during the second quarter worth about $106,000. Bank of America Corp DE acquired a new stake in Carlsmed in the 2nd quarter worth about $108,000. Alpine Woods Capital Investors LLC acquired a new stake in Carlsmed in the 2nd quarter worth about $161,000. Finally, Bank of New York Mellon Corp bought a new stake in Carlsmed in the 2nd quarter valued at about $181,000.

Carlsmed Stock Performance

The stock's 50-day simple moving average is $14.87 and its 200-day simple moving average is $12.52. The stock has a market cap of $504.12 million, a price-to-earnings ratio of -12.92 and a beta of 1.97. The company has a current ratio of 8.84, a quick ratio of 8.66 and a debt-to-equity ratio of 0.18.

About Carlsmed

Carlsmed, Inc. is a medical technology company focused on personalized solutions for spine surgery. The company combines patient-specific planning, advanced imaging, software and additive manufacturing to develop implants designed to address the anatomical needs of individual patients. Its products include the aprevo® patient-specific interbody implant system, which is designed for use in spinal fusion procedures. Carlsmed's technology is intended to support surgeons in planning procedures and selecting or creating implants that may help restore spinal alignment and improve surgical precision.

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