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Investing.com -- Medacta Group shares jumped 6% following the company’s impressive financial results that beat consensus expectations and prompted management to raise both near-term and mid-term guidance.
The medical technology company reported group revenues that exceeded analyst consensus by 4%, driven by robust 19.8% growth at constant exchange rates (CER) across all regions and product categories. North America was particularly strong with 21.5% CER growth, while EMEA grew 15.8% CER and Asia-Pacific surged 25.3% CER.
From a product perspective, the company’s core Hip business grew 11.5% CER, beating consensus by 3%. However, Knees (23.8% CER, 5% beat vs. consensus) and Extremities (44% CER, in-line with consensus) were the primary growth drivers during the period.
Following these strong results, Medacta raised its 2024 revenue growth guidance to 16-18% CER from the previous 13-15% CER. The company also increased its adjusted EBITDA margin guidance to 28% at CER, up from 27% previously. Additionally, management upgraded its mid-term outlook, now expecting 10-14% topline growth versus the previous "low double digit" guidance, and a margin of 28% CER compared to the earlier projection of 27%.
"This was a clear beat and multiple raises which should enhance confidence in the long term story here. Hence we expect a positive reaction even if the shares have travelled well into the print," UBS analysts noted.
The revised guidance is expected to translate to approximately a 1% increase to consensus sales forecasts for 2025 and a 4-5% uplift to consensus adjusted EBITDA estimates. The company is hosting a conference call today to discuss the results in more detail.
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