Tela Bio Inc Down 18.06% To $4.70 After Earnings Beat

TELA Bio Inc (TELA) beat out earnings estimates for Q3 2023 this afternoon.

Analyst expectations for Tela Bio Inc earnings per share (EPS) were at a loss of $0.49 per share, with the company surpassing those estimates with a reported EPS loss of $0.45 per share, leading to a positive surprise of $0.04 per share (8%). Tela Bio Inc's earnings rose 30% year-over-year as the firm reported an EPS loss of $0.64 per share in its year-ago quarter. The positive annual growth shows the Healthcare company is performing well amid recent economic conditions.

Consensus estimates for Tela Bio Inc revenue averaged out to $16.2 million, with the business missing on those expectations with reported third-quarter revenue of $15.1 million. The $1.1 million (7%) negative revenue surprise led to 35% growth year-over-year as the firm reported revenue of $11.2 million in its year-ago quarter. The lower earnings growth compared to revenue points to Tela Bio Inc not being able to improve its profit margin.

The stock is down 18.06% to $4.70 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Tela Bio Inc a Neutral Sentiment Rank from InvestorsObserver.

Tela Bio Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 13, putting Tela Bio Inc in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $5.42 on November 3, 2023 and set a 52-week high on January 6, 2023 at $13.18.

TELA Bio Inc is a United States-based medical technology company. The company is involved in developing and marketing of tissue reinforcement materials to address unmet needs in soft tissue reconstruction. Its reinforced tissue matrices called OviTex improve the clinical outcomes and reduce costs of care in hernia repair, abdominal wall reconstruction and plastic and reconstructive surgery.