Tactile Systems Technology, Inc. (TCMD) Tops Q1 EPS by 14c; Raises FY Rev Guidance

Tactile Systems Technology, Inc. (NASDAQ: TCMD) reported Q1 EPS of $0.08, $0.14 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $37.6 million versus the consensus estimate of $33.32 million.

“Our first quarter performance reflects an exciting start to 2019, driven by strong adoption of our Flexitouch Plus system,” said Gerald R. Mattys, Chief Executive Officer of Tactile Medical. “First quarter revenue results benefitted from the investments we have made in our sales team, the continuation of our targeted sales strategy focused on high-volume accounts and stronger than expected sales volumes due to a new contract with a large commercial payer. Our total revenue growth also benefitted from the adoption of the new accounting standard for leases which calls for recognizing rental revenue upon the commencement of the rental agreement, versus our past practice of recognizing revenue over the life of the rental.”

Mr. Mattys continued, “We have increased our full year 2019 outlook to reflect the impacts of both our better than expected revenue performance in the first quarter and the adoption of the new lease accounting standard. We now expect total revenue to increase 25% to 27% year-over-year in 2019. We remain confident in our ability to deliver strong revenue growth and improved profitability, as we continue to expand our penetration of the $4+ billion U.S. lymphedema and chronic venous insufficiency markets.”

GUIDANCE:

Tactile Systems Technology, Inc. raises FY2019 revenue to $180-182.5 million, versus the consensus of $175.5 million.

For earnings history and earnings-related data on Tactile Systems Technology, Inc. (TCMD) click here.

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