K2M slides on Q2 sales miss

Shares in K2M (NSDQ:KTWO) fell today after the medical device maker met loss per share expectations but missed sales consensus on Wall Street with its 2nd quarter earnings results.

The Leesburg, Va.-based company posted losses of $9.1 million, or 21¢ per share, on sales of $65.7 million for the 3 months ended June 30, seeing losses shrink 18.4% while sales grew 10.9% compared with the same period in the previous year.

Losses per share were just in line with the 21¢ consensus on Wall Street, while sales fell short of analyst’s $66.3 million expectations.

“Our 2nd quarter product launches and strategic accomplishments reflect continued progress toward our strategic goals of introducing innovative spine surgery technologies, expanding our selling presence and improving our selling productivity which, together, help K2M to increase our share of the global spine market. Revenue growth in the second quarter was driven by double-digit growth in the U.S. and high single-digit constant currency growth outside the U.S. During the quarter, we also made progress toward achieving profitability, generating $0.6 million in Adjusted EBITDA, compared to an Adjusted EBITDA loss of $0.3 million last year. We have reaffirmed our full year financial outlook-including constant currency revenue growth of 12%-15% year-over-year and Adjusted EBITDA of $6 million to $10 million-and continue to expect improving results over the balance of 2017,” prez & CEO Eric Major said in a prepared statement.

K2M reaffirmed its 2017 guidance, expecting to post sales of between $263 million and $270 million, representing growth of 11$ to 14%, with a total net loss of between $34 million and $31 million.

Shares in K2M have fallen approximately 10%, at $21.86 as of 1:46 p.m. EDT.

The post K2M slides on Q2 sales miss appeared first on MassDevice.

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