TELA Bio (NASDAQ:TELA) Posts Earnings Results, Beats Expectations By $0.03 EPS

TELA Bio (NASDAQ:TELA) issued its quarterly earnings results on Tuesday. The company reported ($0.13) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.03, FiscalAI reports. TELA Bio had a negative net margin of 51.53% and a negative return on equity of 1,320.81%. The business had revenue of $18.96 million during the quarter, compared to analyst estimates of $20.00 million.

Here are the key takeaways from TELA Bio’s conference call:

• Third-quarter revenue fell 8% year over year to $19 million, mainly because of a $2 million decline in OviTex PRS; U.S. hernia revenue was slightly lower year over year.
• OviTex PRS revenue declined 20% year over year and 6% sequentially. Management attributed the weakness to sales-team changes and the loss of several surgeon accounts, and said rebuilding adoption will take time.
• Commercial results showed some improvement: U.S. hernia volume grew both year over year and sequentially, LIQUIFIX posted a quarterly sales record, and European revenue increased 18% year over year. Management expects sequential growth in Q4 and says it expects growth to continue into 2027, while acknowledging the recovery path is still being assessed.
• The company says its cost reductions are substantially complete, representing $17 million in annualized savings. Adjusted EBITDA loss improved 40% year over year to $3.4 million, and management expects 2027 expenses of roughly $76 million to $78 million.
• TELA Bio ended the quarter with $22.7 million in cash, and its lender suspended minimum-revenue covenant testing for two quarters. The waiver applies only to that covenant; the company said it continues to manage its other obligations.

TELA Bio Trading Down 7.5%

TELA Bio stock opened at $0.80 on Wednesday. TELA Bio has a 52 week low of $0.50 and a 52 week high of $1.50. The stock has a market cap of $36.11 million, a price-to-earnings ratio of -1.04 and a beta of 1.46. The company’s 50-day moving average price is $1.03 and its two-hundred day moving average price is $0.85.

Analyst Ratings Changes

Several brokerages have recently commented on TELA. UBS Group set a $2.00 price target on shares of TELA Bio in a research report on Friday, September 25th. Wall Street Zen upgraded TELA Bio to a “sell” rating in a research note on Saturday, October 31st. Weiss Ratings raised TELA Bio from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, October 26th. Finally, Craig Hallum initiated coverage on TELA Bio in a report on Friday, September 25th. They set a “buy” rating and a $2.00 target price on the stock. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $2.14.

Insider Buying and Selling at TELA Bio

In related news, Director Joseph Capper acquired 25,000 shares of the firm’s stock in a transaction dated Thursday, September 17th. The stock was acquired at an average cost of $1.22 per share, for a total transaction of $30,500.00. Following the completion of the acquisition, the director directly owned 179,827 shares of the company’s stock, valued at approximately $219,388.94. The trade was a 16.15% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Over the last ninety days, insiders have purchased 115,000 shares of company stock valued at $119,500. Corporate insiders own 1.10% of the company’s stock.

About TELA Bio

TELA Bio, Inc. is a medical technology company that develops and commercializes advanced tissue-reinforcement products for soft-tissue repair and reconstruction. The company’s products are designed to support the repair of damaged or weakened tissue while preserving a more natural tissue response. TELA Bio’s principal product platform is OviTex Reinforced Tissue Matrix, which combines biologic tissue with polymer reinforcement in a proprietary, textile-like design. OviTex products are used in procedures involving hernia and abdominal wall repair, as well as other soft-tissue reconstruction applications.