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Investing.com - Piper Sandler has reiterated an Overweight rating on Kestra Medical (TASE:BLWV) Technologies (NASDAQ:KMTS) with a price target of $27.00 following the company’s fiscal fourth-quarter results. With the stock currently trading at $15.22, significantly below analyst targets ranging from $23 to $30, the medical device company commands a market capitalization of $836 million.
Kestra reported mixed fourth-quarter results with sales and gross margin exceeding expectations, while operating expenses came in higher than analysts had anticipated. The firm noted that the key metrics were "very good" despite the mixed overall picture. According to InvestingPro data, the company maintains a healthy gross profit margin of 34.15% and operates with a moderate debt level.
Piper Sandler described Kestra’s fiscal 2026 sales guidance as "quite conservative" and expressed confidence that the company’s top-line momentum remains strong. The firm expects this momentum to continue as Kestra expands its sales force.
During its earnings call, Kestra announced securing a sole source payer contract. While the plan is small, Piper Sandler views this as further validation of Kestra’s technology in the wearable cardioverter defibrillator (WCD) market.
The research firm anticipates Kestra will continue gaining significant market share in the $1 billion domestic WCD market, which supports its Overweight rating on the stock.
In other recent news, Kestra Medical Technologies reported a strong fiscal fourth-quarter 2025 performance, with revenue reaching $17.2 million, marking a 71% increase year-over-year. This impressive growth surpassed both Stifel and consensus estimates, driven by a 43% increase in ASSURE prescription volume and enhanced revenue cycle management. The company posted a gross margin of 44.3%, slightly above analyst expectations, attributed to a higher in-network patient mix and volume leverage. Despite a negative earnings per share of -2.21, Kestra’s future outlook remains positive, with fiscal 2026 sales guidance set at $85 million, representing a 42% increase. Stifel reiterated its Buy rating on Kestra, maintaining a price target of $28.00, and noted management’s confidence in meeting or exceeding future expectations. However, the company did report an adjusted EBITDA loss of $20.3 million, highlighting ongoing challenges in achieving profitability. Kestra continues to focus on expanding its market share and innovating product offerings, with plans to double its sales coverage and improve revenue cycle management.
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