Alphatec (NASDAQ:ATEC) Announces Quarterly Earnings Results, Hits Expectations

Alphatec (NASDAQ:ATEC) released its quarterly earnings data on Tuesday. The medical technology company reported $0.07 earnings per share for the quarter, meeting the consensus estimate of $0.07, FiscalAI reports. Alphatec had a negative return on equity of 1,775.53% and a negative net margin of 13.49%.The business had revenue of $213.51 million for the quarter, compared to analyst estimates of $211.26 million. During the same period last year, the firm posted $0.02 earnings per share. Alphatec’s revenue was up 15.1% compared to the same quarter last year.

Here are the key takeaways from Alphatec’s conference call:

• Q2 revenue rose 15% to $214 million, with surgical revenue up 17%, cases up approximately 20%, and net new surgeons up 24%, indicating continued adoption and utilization momentum.
• Profitability improved significantly, with adjusted EBITDA up 53% year over year to $36 million and margin expanding to 17%; the company raised full-year adjusted EBITDA guidance to approximately $140 million from $134 million.
• ATEC generated positive free cash flow for the quarter and expects $4 million-$6 million in Q3, while its refinanced credit facilities extend maturities to 2031 and are expected to reduce annual interest expense by more than $6 million.
• Full-year revenue guidance remains unchanged at approximately $882 million, with high-teens surgical case growth expected in the second half; however, revenue per case is now expected to decline by low single digits, primarily because biologics attachment has stabilized below prior-year levels.
• Management highlighted EOS, EOS Insight, Valence, and SafeOp as key growth catalysts, citing approximately 32% implant-revenue growth within six months of EOS Insight adoption and growing access to leading academic and deformity-focused institutions.

Alphatec Price Performance

NASDAQ:ATEC opened at $9.06 on Thursday. Alphatec has a 52 week low of $6.82 and a 52 week high of $23.29. The stock’s fifty day moving average is $8.74 and its two-hundred day moving average is $10.77. The company has a market capitalization of $1.39 billion, a P/E ratio of -12.74 and a beta of 0.85. The company has a quick ratio of 1.12, a current ratio of 1.90 and a debt-to-equity ratio of 40.35.

Insider Activity

In related news, Director Karen K. Mcginnis sold 6,050 shares of the business’s stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $8.01, for a total value of $48,460.50. Following the sale, the director directly owned 94,671 shares in the company, valued at approximately $758,314.71. The trade was a 6.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 13.48% of the company’s stock.

Institutional Investors Weigh In On Alphatec

Institutional investors and hedge funds have recently made changes to their positions in the stock. Osterweis Capital Management Inc. bought a new stake in Alphatec during the second quarter worth approximately $37,000. Northwestern Mutual Wealth Management Co. lifted its position in Alphatec by 157.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,571 shares of the medical technology company’s stock worth $54,000 after acquiring an additional 1,571 shares during the last quarter. State of Wyoming bought a new stake in Alphatec during the second quarter valued at about $124,000. Focus Partners Wealth acquired a new stake in shares of Alphatec in the third quarter valued at about $138,000. Finally, Tower Research Capital LLC TRC grew its position in shares of Alphatec by 536.4% in the second quarter. Tower Research Capital LLC TRC now owns 14,815 shares of the medical technology company’s stock valued at $164,000 after purchasing an additional 12,487 shares during the last quarter. 66.35% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

ATEC has been the topic of a number of recent analyst reports. UBS Group raised their price target on shares of Alphatec from $15.00 to $16.00 and gave the company a “buy” rating in a research report on Wednesday. Canaccord Genuity Group cut their price target on shares of Alphatec from $25.00 to $23.00 and set a “buy” rating for the company in a research note on Wednesday, May 6th. Barclays decreased their target price on shares of Alphatec from $27.00 to $24.00 and set an “overweight” rating for the company in a research note on Thursday, May 7th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Alphatec in a research report on Monday. Finally, HC Wainwright reissued a “buy” rating and issued a $24.00 target price on shares of Alphatec in a research note on Thursday, May 7th. Thirteen equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $17.40.

Alphatec Company Profile

Alphatec Holdings, Inc (NASDAQ: ATEC) is a medical technology company focused on the design, development and commercialization of products for the surgical correction of degenerative spinal conditions. The company’s portfolio centers on interbody implants, biologics, fixation devices and surgical planning tools intended to improve patient outcomes in spinal fusion procedures. Alphatec’s flagship offerings include customizable interbody cages, bone graft materials and specialized instrumentation designed for minimally invasive and open spinal surgeries.

Founded as Alphatec Spine in 1985 and rebranded as Alphatec Holdings in 2018, the company has grown from a single-product organization into a multi-platform innovator in the spine market.