TELA Bio (NASDAQ:TELA) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

TELA Bio (NASDAQ:TELA) posted its quarterly earnings results on Tuesday. The company reported ($0.13) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.03, FiscalAI reports. The firm had revenue of $18.96 million for the quarter, compared to analyst estimates of $20.00 million. TELA Bio had a negative net margin of 53.57% and a negative return on equity of 1,320.81%.

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 Stock Performance

Shares of NASDAQ:TELA traded up $0.03 on Thursday, hitting $0.97. 9,676 shares of the company were exchanged, compared to its average volume of 182,174. The company’s 50 day moving average price is $1.03 and its two-hundred day moving average price is $0.85. The firm has a market capitalization of $43.83 million, a price-to-earnings ratio of -1.34 and a beta of 1.46. TELA Bio has a one year low of $0.50 and a one year high of $1.50.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the stock. Wall Street Zen raised shares of 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 report on Friday, September 25th. Craig Hallum began coverage on TELA Bio in a report on Friday, September 25th. They issued a “buy” rating and a $2.00 target price on the stock. Finally, Weiss Ratings upgraded TELA Bio from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, October 26th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $2.14.

Insider Buying and Selling

In other TELA Bio news, Director Joseph Capper purchased 50,000 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were purchased at an average price of $1.06 per share, for a total transaction of $53,000.00. Following the completion of the purchase, the director directly owned 154,827 shares of the company’s stock, valued at approximately $164,116.62. This represents a 47.70% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders acquired 115,000 shares of company stock valued at $119,500 over the last three months. 1.10% of the stock is owned by company insiders.

TELA Bio Company Profile

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.