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Friday, BTIG analysts adjusted their outlook on Xtant Medical Holdings, Inc. (NYSE:XTNT), a medical device company with a market capitalization of $67 million, reducing the price target from $3.00 to $2.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has seen a challenging period, declining over 57% in the past year. The revision follows Xtant’s fourth-quarter financial performance for the year 2024, which reported revenues of $31.5 million, marking a 12.0% increase year-over-year, and a loss per share (LPS) of $0.02. These figures aligned with BTIG’s revenue estimates but fell slightly below the anticipated LPS.
Xtant Medical (TASE:BLWV)’s gross margins (GMs) were approximately 50.8%, a decrease of 1020 basis points from the previous year, attributed to inventory charges associated with Surgalign and product optimization efforts in OrthoBiologics. The company also reported an adjusted EBITDA of $0.4 million for the quarter.
The firm’s financial guidance for the fiscal year 2025 forecasts revenues between $126 million and $130 million, representing a growth rate of 7% to 11% year-over-year. However, this projection is notably lower than consensus estimates of $132.8 million for the same period. InvestingPro analysis shows the company maintains a healthy current ratio of 2.12, indicating strong short-term liquidity, though its overall Financial Health Score stands at "FAIR" with a rating of 2.4 out of 5. The management of Xtant Medical has expressed confidence in achieving this guidance while also focusing on reducing operating expenses to manage cash flow and streamline the company’s business profile.
The strategic shift for Xtant involves scaling back its offerings in Spinal Implants to concentrate more on the broader OrthoBiologics sector. BTIG analysts believe that while it may take some time for investor interest to revive in Xtant shares, the company has set a realistic target for the fiscal year 2025. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued. Subscribers can access 7 additional ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of over 1,400 US stocks, to better understand the company’s potential amid this strategic transformation. They anticipate that the slower growth in Spinal Implants will be compensated by a stronger performance in OrthoBiologics, suggesting a balanced outlook for the company’s future.
In other recent news, Xtant Medical Holdings Inc. reported its fourth-quarter 2024 earnings, revealing a slight miss on earnings per share (EPS) with a recorded -$0.02 against a forecast of -$0.01. The company achieved a 12% year-over-year revenue increase, reaching $31.51 million, although this was slightly below the expected $31.8 million. Despite these challenges, Xtant Medical reported a positive adjusted EBITDA of $438,000, showing operational improvement from the previous year’s negative figure. The company also highlighted plans for new product launches and innovations in 2025. Looking forward, Xtant Medical projects 2025 revenue between $126 million and $130 million, indicating an 8-11% growth. CEO Sean Brown emphasized the company’s focus on profitability over revenue growth, aiming to achieve cash flow positivity by the end of 2025. Additionally, the company does not anticipate the need for additional capital raising.
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