CryoLife (NYSE: CRY) beat analysts’ revenue estimate by 11% in the quarter ended June 30, driving shares up $3.75 in mid-afternoon trading.
Atlanta, Ga.-based CryoLife’s revenue hit $68.5 million in the quarter, up from $47.8 million for the same period of 2017. Its bottom line slumped to $226,000 or 0.1¢ per share, well below Wall Street’s projection of 0.8¢ and last year’s results of $3.2 million or0.09¢ per share. Operating expenses for the quarter were up 44% to $40.45 million, cutting into the bottom line. Non-GAAP earnings were 0.10¢ per share.
“We had a very successful second quarter which included strong revenue growth, market share gains, new account growth and progress on our clinical and R&D programs,” said Pat Mackin, president & CEO, in a prepared statement. “Our On-X and JOTEC products continue to gain momentum as our direct sales force is effectively conveying the attributes of our differentiated products. We expect our business momentum to continue, which has led us to raise our full year revenue guidance. Looking ahead, we have a number of initiatives that can drive substantial future growth.”
The company acquired German stent graft and surgical graft maker Jotec in December 2017 for $225 million. CryoLife paid $130 million for On-X Life Technologies in January 2016.
The company is increasing its full-year 2018 total revenues guidance to $256 million to $260 million, up from its previous estimate of $250 million to $256 million. It expects total third-quarter revenues to range from $61 million to $63 million. Except for total revenues, the company is reiterating its full-year 2018 financial guidance.
