AtriCure stock maintains Buy rating at Needham following strong Q3 results

Investing.com - AtriCure Inc. (NASDAQ:ATRC) maintained its Buy rating and $45.00 price target at Needham following the company’s third-quarter 2025 financial results that exceeded analyst expectations. The medical device company currently trades at $35.44, with analyst targets ranging from $40 to $60, according to InvestingPro data. The strong consensus recommendation of 1.44 reflects widespread analyst optimism.

The medical device company reported better-than-expected revenue, EBITDA, and earnings per share for the quarter, prompting management to raise its full-year 2025 guidance across all three metrics. InvestingPro data shows AtriCure has maintained impressive revenue growth of 16.28% over the last twelve months, continuing its five-year compound annual growth rate of approximately 15%.

Revenue growth for the quarter reached 15.1%, slightly down from 16.5% in the second quarter, with slower performance in Open-Ablation and Pain Management segments partially offset by improved growth in Appendage Management and a smaller decline in Minimally Invasive Ablation.

AtriCure’s gross margin improved by 60 basis points year-over-year, while its operating margin increased by 650 basis points to 0.2%, marking the first quarter the company achieved a positive operating margin.

The company generated over $30 million in cash during the quarter, with Needham viewing AtriCure’s guidance and 2026 consensus estimates as conservative, citing potential for new product launches to drive additional revenue and EBITDA growth. InvestingPro analysis indicates AtriCure’s strong financial position with a current ratio of 3.94, confirming liquid assets significantly exceed short-term obligations. The company appears fairly valued according to InvestingPro’s Fair Value model, with six analysts recently revising earnings estimates upward for upcoming periods. For deeper insights and more tips on AtriCure, check out the comprehensive Pro Research Report available exclusively to subscribers.

In other recent news, AtriCure Inc. reported its third-quarter 2025 financial results, highlighting significant developments. The company achieved a revenue of $134.3 million, surpassing expectations of $131.25 million and marking a 16% year-over-year growth. AtriCure’s adjusted EBITDA more than doubled to $17.8 million, significantly exceeding Street expectations of $11.7 million. The company’s earnings per share (EPS) came in at -$0.01, a notable improvement over the forecasted -$0.11. Following these results, Citizens reiterated its Market Outperform rating for AtriCure with a $60.00 price target. Despite the positive earnings report, AtriCure’s stock experienced a decline in after-hours trading. These developments reflect the company’s strong financial performance and the continued confidence of analysts in its market position.

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