TELA Bio (NASDAQ:TELA) Issues Earnings Results

TELA Bio (NASDAQ:TELA) released its quarterly earnings data on Tuesday. The company reported ($0.13) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.03, FiscalAI reports. TELA Bio had a negative return on equity of 1,320.81% and a negative net margin of 51.53%. The company had revenue of $18.96 million for the quarter, compared to the consensus estimate of $20.00 million.

Here are the key takeaways from TELA Bio’s conference call:

• Third-quarter revenue fell 8% year over year to $19 million, mainly because of a $2 million decline in OviTex PRS; U.S. hernia revenue was slightly lower year over year.
• OviTex PRS revenue declined 20% year over year and 6% sequentially. Management attributed the weakness to sales-team changes and the loss of several surgeon accounts, and said rebuilding adoption will take time.
• Commercial results showed some improvement: U.S. hernia volume grew both year over year and sequentially, LIQUIFIX posted a quarterly sales record, and European revenue increased 18% year over year. Management expects sequential growth in Q4 and says it expects growth to continue into 2027, while acknowledging the recovery path is still being assessed.
• The company says its cost reductions are substantially complete, representing $17 million in annualized savings. Adjusted EBITDA loss improved 40% year over year to $3.4 million, and management expects 2027 expenses of roughly $76 million to $78 million.
• TELA Bio ended the quarter with $22.7 million in cash, and its lender suspended minimum-revenue covenant testing for two quarters. The waiver applies only to that covenant; the company said it continues to manage its other obligations.

TELA Bio Trading Down 7.5%

TELA stock traded down $0.06 during trading on Tuesday, hitting $0.80. 122,557 shares of the stock traded hands, compared to its average volume of 180,263. TELA Bio has a one year low of $0.50 and a one year high of $1.50. The stock has a market cap of $36.11 million, a price-to-earnings ratio of -1.04 and a beta of 1.46. The company has a 50 day simple moving average of $1.03 and a 200 day simple moving average of $0.85.

Insiders Place Their Bets

In other news, Director Joseph Capper acquired 25,000 shares of the firm’s stock in a transaction on Thursday, September 17th. The shares were purchased at an average cost of $1.22 per share, with a total value of $30,500.00. Following the completion of the purchase, the director owned 179,827 shares of the company’s stock, valued at $219,388.94. This represents a 16.15% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have bought 115,000 shares of company stock worth $119,500 over the last quarter. 1.10% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Weiss Ratings raised TELA Bio from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, October 26th. Wall Street Zen raised TELA Bio to a “sell” rating in a research note on Saturday, October 31st. UBS Group set a $2.00 price target on TELA Bio in a research report on Friday, September 25th. Finally, Craig Hallum assumed coverage on TELA Bio in a research note on Friday, September 25th. They set a “buy” rating and a $2.00 price objective for the company. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $2.14.

About TELA Bio

TELA Bio, Inc. is a medical technology company that develops and commercializes advanced tissue-reinforcement products for soft-tissue repair and reconstruction. The company’s products are designed to support the repair of damaged or weakened tissue while preserving a more natural tissue response. TELA Bio’s principal product platform is OviTex Reinforced Tissue Matrix, which combines biologic tissue with polymer reinforcement in a proprietary, textile-like design. OviTex products are used in procedures involving hernia and abdominal wall repair, as well as other soft-tissue reconstruction applications.