ConforMIS Inc (CFMS) Tops Q3 EPS by 8c, Revenues Beat; Raises FY18 Revenue Outlook Above Consensus

ConforMIS Inc (NASDAQ: CFMS) reported Q3 EPS of ($0.12), $0.08 better than the analyst estimate of ($0.20). Revenue for the quarter came in at $29 million versus the consensus estimate of $19.19 million.

• Total revenue of $29.0 million, up 57% year-over-year on a reported and constant currency basis, including a royalty settlement of $10.5 million
• Product revenue of $18.3 million, up 1% year-over-year on a reported and constant currency basis• U.S. product revenue of $16.3 million, up 5% year-over-year• Rest of World product revenue of $2.1 million, down 22% year-over-year on a reported basis and 23% year-over-year on a constant currency basis
• Royalty revenue of $10.7 million, including the royalty settlement of $10.5 million
• Gross margin of 68%, an increase of 2,800 basis points year-over-year, or 50%, an increase of 1,000 basis points year-over-year excluding the $10.5 million royalty settlement

"Our US growth of 5% represents a meaningful step-up in performance year-over-year. However, US sales in the fourth quarter are anticipated to be lower than previously expected, and we are taking steps to improve performance in 2019. We continue to face headwinds in our OUS business due to reimbursement challenges,” said Mark Augusti, President and Chief Executive Officer of Conformis, Inc. “Our continued gross margin expansion gives us increasing confidence that the margin improvements we have shown in previous quarters should be sustainable and we are continuing to focus on achieving operational efficiency.”

GUIDANCE:

ConforMIS Inc sees FY2018 revenue of $88.6-89.1 million, versus the consensus of $80.34 million.

For earnings history and earnings-related data on ConforMIS Inc (CFMS) click here.

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