TipRanks

Notifications

Tactile Systems Pre-Releases 1Q; Pulls FY20 Guidance on Covid-19

Med-tech stock Tactile Systems (TCMD) has reported preliminary revenue results for the first quarter and withdrawn its 2020 financial outlook. The company, which focuses on developing medical devices for the at-home treatment of chronic diseases, also provided a business update on the company’s response to the Covid-19 pandemic.

Specifically, TCMD pre-released first quarter revenue of $43–44 million, up 14–17% year-over-year, vs the consensus $44 million estimate. This includes Flexitouch system revenue in the range of $38 million to $39 million, representing growth of approximately 11% to 14% year-over-year.

“Beginning in March, our revenue growth was impacted by the COVID-19 pandemic, which disrupted our ability to access our clinician customers and their patients. Specifically, we saw healthcare facilities and clinics restricting access to their clinicians, reducing patient consultations and treatments, or closing temporarily due to COVID-19” commented CEO Gerald Mattys.

He continued: “As a direct result, we have changed many of our processes and practices… [so that we can] safely make our at-home therapies available for patients.”

Mattys expects COVID-19 will continue to impact near-term financial but concludes “we remain confident in our long-term opportunity related to the $5+ billion U.S. lymphedema market and plan to continue expanding our commercial organization this year to further enhance our growth profile.”

Overall, analysts are retaining a bullish position on the stock, with a Strong Buy consensus. In the last three months TCMD has received three buy ratings vs 1 hold rating, while the average analyst price target works out at $73 (88% upside potential). (See Tactile System’s stock analysis on TipRanks)

However lone bear Suraj Kalia of Oppenheimer is highly critical of the stock, telling investors on April 6: “Ultimately, our view on Tactile remains, 1) Poor science: 2) No rigorous trials done; 3) Aggressive marketing driving the message; 4) Growth expectations unrealistic.”

Related News:
Streaming Pioneer Roku Launches UK Channel, Shares Soar 10%
Global Payments Lowers Q1 Expectations, Removes Full Year Guidance
GlaxoSmithKline, Vir Biotech Team Up in Hunt For Coronavirus Treatment 

Harriet Lefton
Harriet Lefton, originally from the UK, began her career as a journalist specialising in the niche world of metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer. Now she has turned her attention to the world of financial blogging, covering US stocks, analysts and all manner of things finance-related.

Leave a Reply

Your email address will not be published. Required fields are marked *

Leave a Reply

Your email address will not be published. Required fields are marked *