Little Known Factors That Could Affect shares: Establishment Labs Holdings Inc. (NASDAQ: ESTA)

On 17 Jan 2020, Establishment Labs Holdings Inc. (NASDAQ: ESTA) changed -1.30% to recent value of $27.41. The stock transacted 38003 shares during most recent day however it has an average volume of 93.54K shares. It spotted trading -8.82% off 52-week high price. On the other end, the stock has been noted 65.62% away from the low price over the last 52-weeks.

Establishment Labs Holdings Inc. (ESTA) recently reported its financial results for the third quarter ended September 30, 2019.

Third Quarter 2019 Financial Results

Revenues increased $6.6M, or 40%, to $22.9M for the third quarter of 2019, as contrast to $16.3M in the same period in 2018. The increase was primarily driven by double digit growth in the company’s direct markets, together with strong performance in distributor markets.

Gross profit for the third quarter was $14.2M, or 62.3% of revenues, which compares favorably to 60.0% revenues in the second quarter of 2019 and is similar to the third quarter of 2018. The sequential increase in gross margin percentage was driven primarily by increased sales volumes. The company’s gross profit percentage was negatively influenced by 2.1% during the quarter Because of amortization related to the fair value of inventory recorded from its asset acquisitions from distributors in recent quarters.  As the company sells through the remaining purchased inventory, the impact of this amortization dissipates.

Total operating expenses for the third quarter of 2019 were $23.0M, a raise of 42.4% contrast to $16.2M in the third quarter of 2018. This increase was driven by continued investment across the company to support current and future growth, including a comprehensive upgrade of the company’s enterprise resource planning system with SAP.

SG&A expenses increased $6.2M, or 48.1%, to $19.2M. The increase in SG&A was primarily Because of (1) a $3.2M dollar increase in personnel and related costs as a result of hiring additional sales, marketing and administrative employees, (2) a $1.2M dollar increase in legal and consulting costs, (3) a $0.7M dollar increase in sales commissions, and (4) a $0.7M dollar increase in marketing expenses.

R&D expenses increased about 19% to $3.8M, from $3.2M in the third quarter of 2018. The increase in R&D expenses was primarily Because of costs related to the company’s FDA clinical study in the United States.

Net loss for the third quarter of 2019 was $12.8M dollars, as contrast to net income of $1.3M dollars in the same period in 2018, Because of the required growth in operations to support predictable increases in market demand. As a reminder, the third quarter net income in 2018 was affected by a non-cash gain on the fair value of debt related derivatives of $11.4M dollars.

The Company’s cash balance as of September 30, 2019 was $42.6M.

ESTA has a gross margin of 59.20% and an operating margin of -42.90% while its profit margin remained -52.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained 46.90% for this year.  The company has 20.35M of outstanding shares and 18.38M shares were floated in the market. According to the most recent quarter its current ratio was 4.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of -0.78% from the mean of 20 days, 8.20% from mean of 50 days SMA and performed 20.20% from mean of 200 days price. Company’s performance for the week was -4.56%, 8.13% for month and YTD performance remained -0.90%.


Ronald Hemphill

Ronald Hemphill– Business Stories My Name is Ronald Hemphill and I am also the main source from the ‘’ of all the exclusive and most delicate visualization of the activities in the business sector. My first step towards this journey was taken in the very early years of my life. I started with an independent financial consultant. However, I only had almost 4 years of skills and experience in this market. I have always been a free personality and like to fly one place to another, to explore more and more. Moreover, this passion and craze of traveling gave me a chance to report a section for best news associations. Last but not least, I am presently working full-time as an editor.

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