Tactile Systems Stock Surges on Strong Q4 Beat and Bullish Guidance
Shares of Tactile Systems Technology jumped 22% in late trading Tuesday after the medical device maker reported fourth-quarter earnings and revenue that surpassed Wall Street expectations. The Minneapolis-based company attributed the growth to robust demand across its core product lines and issued a full-year revenue forecast that outpaced analyst projections.
The medical technology specialist reported a net profit of $10.6 million, or 46 cents per share, up from $9.7 million during the same period last year. This performance exceeded the 44 cents per share anticipated by analysts polled by FactSet. Total revenue climbed 21% to $103.6 million, significantly outperforming the consensus estimate of $93.8 million.
Growth was driven by a 16% increase in sales and rentals within the company’s lymphedema segment. Furthermore, Tactile Systems saw a 66% growth in its airway clearance product line, signaling a rapid expansion in its respiratory care portfolio.
Growth Projections for the Coming Year
For the full fiscal year, the company issued revenue guidance between $357 million and $365 million, representing an annual increase of 8% to 11%. This outlook is notably higher than the $347.9 million analysts had predicted. Chief Executive Sheri Dodd stated that the company is entering the new year from a position of operational and financial strength, with expectations that its lymphedema business will continue to perform in line with overall market growth.
Following the report, the stock climbed to $34.30 in after-hours trading. The move extends a period of significant momentum for the firm, which has seen its share price rise 57% over the past 12 months.
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