Alphatec shares jump on strong preliminary results

Investing.com -- Alphatec Holdings (NASDAQ: NASDAQ:ATEC ) stock rose 10% following the company's announcement of select preliminary financial results for the fourth quarter and full-year ended December 31, 2024, along with providing an outlook for 2025 that signals continued growth.

The company reported that preliminary total revenue for the full-year 2024 increased by approximately 27%. This surge was attributed to a 29% growth in surgical revenue, driven by a 19% rise in surgical volume and an 8% increase in average revenue per procedure. The preliminary fourth-quarter revenue range of $175.5 million to $177.0 million surpassed the consensus estimate of $170.7 million. For the full year, Alphatec expects total revenue to be between $610.3 million and $611.8 million.

Additionally, Alphatec's cash balance as of December 31, 2024, was approximately $139 million, marking a significant increase from the previous quarter. This financial strength is partly due to an infusion of $50 million from a term loan expansion.

Chairman and CEO Pat Miles expressed confidence in the company's trajectory, emphasizing their unique approach to spine surgery and the integration of informatics into their products as key drivers for their competitive edge and sustained demand.

Looking ahead, Alphatec anticipates full-year 2025 revenue to reach $732 million, which would represent a 20% growth compared to 2024. This projection includes surgical revenue of approximately $657 million and EOS revenue around $75 million. The company also expects to achieve positive free cash flow with an adjusted EBITDA of $75 million for the year.

Needham analyst David Saxon has responded positively to the preannouncement, raising the price target on Alphatec to $16.00 from $13.00 while maintaining a Buy rating. Saxon highlighted the broad-based strength in the fourth quarter of 2024, with robust surgical growth and an uptick in EOS growth from the previous quarter. "Given ATEC's durable revenue growth with continued progress toward profitability, we reiterate our Buy rating and have raised our price target to $16," Saxon said.

Alphatec will provide a detailed report of its fourth quarter and full-year 2024 financial results on February 26, 2025, followed by a live webcast to discuss the outcomes and future expectations.

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Source: Investing.com