Intersect ENT (XENT) Misses Q2 EPS by 9c, Revenues Beat

Intersect ENT (NASDAQ: XENT) reported Q2 EPS of ($0.65), $0.09 worse than the analyst estimate of ($0.56). Revenue for the quarter came in at $9.8 million versus the consensus estimate of $5.41 million.

Second Quarter 2020 Overview

• Revenue of $9.8 million in the second quarter of 2020, compared to $26.7 million in the second quarter of 2019
• Strong sales trend reinforces confidence in sequential second half revenue growth
• Cash, Cash Equivalents and Short-term Investments of $135.8 million

"While well below last year, we achieved stronger than expected second quarter revenues led by the return of sinus surgery procedures using PROPEL as the U.S. market began to overcome the challenges of the COVID-19 pandemic," said Thomas A. West, President and CEO. “Our revenue performance reflected increasing momentum in the quarter with May stronger than a very soft April and June stronger than May. This momentum stemmed from the continued refinement, investment and improvement in our commercial execution on top of the pent-up demand of untreated patients awaiting care for chronic rhinosinusitis. In addition to steadily improving PROPEL volumes, SINUVA patient referrals also experienced a progressive rise throughout the quarter. We anticipate continued increases in elective sinus procedures that will drive sequential revenue growth during the second half of 2020, a trend we are already seeing as evidenced by our strong revenue performance in July."

Outlook

As previously announced, due to the rapidly evolving environment and continued uncertainties resulting from the impact of COVID-19, Intersect ENT withdrew its annual guidance for 2020. Based on second quarter elective procedure volumes and referral trends, in addition to the strong third quarter start, the Company expects a sequential increase in revenues during the second half of 2020 from second quarter 2020 levels and to grow revenues in 2021 relative to 2019. The Company believes it will also return to gross margin levels in the mid-70% range by year end 2020. As a result of the Company’s cost reduction initiatives and capital raise of $65.0 million announced in May, the Company continues to believe it has adequate capital to operate effectively through 2022.

For earnings history and earnings-related data on Intersect ENT (XENT) click here.

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