On Tuesday, Stereotaxis (NYSE:) stock received a reiterated Buy rating and a $5.00 price target from Roth/MKM, despite reporting second-quarter revenue that fell short of expectations.
The company’s revenue for the second quarter of 2024 was $4.5 million, which did not meet the consensus forecast and Roth/MKM’s estimate of $5.6 million.
System revenue was particularly low at $0.2 million, compared to the $1.3 million anticipated by the consensus and the $1.5 million projection by Roth/MKM.
Stereotaxis management attributed the lower-than-expected system revenue to extended customer construction projects. However, they provided an optimistic outlook for the company’s future financial performance. The management highlighted a substantial system backlog valued at $15.3 million at the end of the second quarter.
The company’s management expressed confidence that the latter half of the year would show improvement. They forecast stronger revenue and free cash flow in the upcoming quarters. This outlook supports the maintained Buy rating and price target set by Roth/MKM.
Roth/MKM’s stance on Stereotaxis remains positive, with expectations for a rebound in financial performance as the year progresses. The firm’s analysis points to a potentially stronger second half for the company, despite the recent revenue shortfall.
InvestingPro Insights
As Stereotaxis navigates through its financial year, real-time data from InvestingPro offers a snapshot of the company’s current market position. With a market capitalization of $150.5 million, Stereotaxis is trading at a high Price / Book multiple of 10.33, indicating that investors are paying a premium for the company’s net asset value. The company’s revenue for the last twelve months as of Q1 2024 stood at $27.1 million, reflecting a slight quarterly revenue growth of 5.07%.
InvestingPro Tips highlight the volatility of Stereotaxis’ stock price movements, which is crucial for investors to consider in the context of the company’s recent revenue miss. Additionally, the fact that Stereotaxis’ liquid assets exceed short-term obligations is a positive sign for its liquidity and short-term financial stability. With these insights, investors can better understand the company’s current financial health and future prospects. For those seeking more detailed analysis, there are additional InvestingPro Tips available at InvestingPro Stereotaxis page.
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