Credit: Shutterstock photoExactech Inc.EXAC recently announced preliminary third-quarter 2015 estimates. The company anticipates revenues of approximately $56 million for the quarter, below the earlier guided range of $58-$60 million.
Following the news, Exactech shares plunged 4.1% to close at $18.00 on Oct 16, 2015.
Exactech primarily attributed the slashed revenue figure to lower international sales (down 13%) that resulted from currency and economic woes in European and Latin American markets.
Exactech also revised down its earnings guidance to a range of 18 cents to 20 cents per share from the 23-25 cent band.
Exactech's management also slashed its full-year 2015 revenue and earnings outlook. The company now expects revenues in the range of $239-$241 million, down from the earlier guidance of $246-$250 million. Earnings are now expected in the range of $1.00-$1.14 per share, below the previous range of $1.16-$1.20.
Although the lowered guidance is disappointing, we believe that the rollout of new and innovative products will help the company gain market traction in the rest of 2015 and beyond.
The company recently launched Acapella One Cervical Spacer System and Ambassador Anterior Cervical Plate System which have expanded its spine product suite and will also benefit its top line going forward.
Exactech also launched ExactechGPS Guided Personalized Surgery following the acquisition of BlueOrtho SAS. This system has been designed to provide real-time visual guidance and alignment data in total joint arthroplasty procedure to orthopedic surgeons.
Exactech also announced successful first surgeries with three of its new products - Equinoxe Humeral Reconstruction Prosthesis, Alteon Monobloc Revision Femoral Stem and a new revision knee system.
Meanwhile, in June this year, the company received FDA approval to market its Optetrak Logic Constrained Condylar (CC) Prosthesis. The system has been approved for revision knee arthroplasty cases.
Notably, Exactech has a clinically recognized knee system that offers advanced approaches to knee replacement. The FDA clearance of Optetrak Logic CC further expands the Exactech Knee system offerings for surgeons who wish for predictable and reproducible outcomes.
Nevertheless, volatility in currency exchange rates, pricing pressure and intensifying competition will continue to hurt overall results in the near term. Meanwhile, the company is set to report third-quarter results on Oct 27.
Zacks Rank & Key Picks
Currently, Exactech carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry are Cyberonics Inc. CYBX , Masimo Corporation MASI and Cesca Therapeutics KOOL . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EXACTECH INC (EXAC): Free Stock Analysis Report
MASIMO CORP (MASI): Free Stock Analysis Report
CESCA THERAP (KOOL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
