Cutera, Inc. (NASDAQ: CUTR) reported its second quarter earnings after close on Monday for the fiscal year and beats all expectations as shares jump over 23 percent midday Tuesday.
Analysts had predicted an overall loss for the company in earnings, but the company proved otherwise. EPS increased $0.13, compared to a projected loss of $0.09.
Cutera also reported a 32 percent increase year over year in revenue to a record revenue of $36.4 million. The company states that it was primarily due to a 63 percent growth in North America product revenue. The company says most of the product revenue came from its launch of of truSculpt 3D body sculpting platform.
truSculpt 3D offers a new treatment method and higher frequency resulting in increased efficacy and greater fat destruction and circumferential reduction. The company says it is not done with the product and plans to enhance it even more, according to the earnings report. The product has already received FDA approval.
The company also reported a net profit of $1.9 million, which also marks another record.
After reporting its second quarter results, this marks the company’s twelfth consecutive quarter of double digit revenue.
James Reinstein, President and Chief Executive Officer of Cutera, stated, “We are pleased with the record level of second quarter revenue. This was coupled with significant improvement in several operating metrics, illustrating the organization’s ability to leverage the strong revenue. Our revenue growth of 32% was driven by multiple platforms within our product portfolio, with the launch of the truSculpt 3D product in North America being a significant driver of the growth and margin improvement this quarter. The truSculpt 3D also provides the Company with a new source of recurring revenue.”
The company had also approved a stock repurchase program which allowed $25 million to be added to the current stock repurchase program. In the second quarter, the company repurchased $4.1 million worth of shares, which brings the total of repurchased shares value to $52 million.
“Our Board’s approval to further expand our stock repurchase program reflects its confidence in our ability to build long-term value for shareholders. I believe that our financial performance in the second quarter of 2017, and our overall trajectory, demonstrates that Cutera is positioned to meet our short, medium and long term goals,” said Reinstein.
With the strong second quarter, Cutera has raised its full year guidance now.
The company increased its revenue estimates from $140 million to $144 to $147 million and EPS increased from a projected $0.45 to $0.50 previously to $0.50 to $0.54.