TELA Bio (NASDAQ:TELA) Announces Earnings Results

TELA Bio (NASDAQ:TELA) issued its earnings results on Monday. The company reported ($0.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.17) by ($0.03), FiscalAI reports. TELA Bio had a negative return on equity of 1,320.81% and a negative net margin of 49.30%.The firm had revenue of $19.29 million during the quarter, compared to analyst estimates of $20.01 million.

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

• Negative Sentiment: Second-quarter revenue fell 4% year over year to $19.3 million, primarily due to a 23% decline in OviTex PRS unit volume. The company withdrew its full-year revenue guidance and said it plans to meaningfully reduce costs.
• Negative Sentiment: Sales representatives are taking longer than expected to reach productivity, with management now estimating a 9–12-month ramp. Hospital bundling and contracting practices continue to hinder OviTex adoption, while the company ended the quarter with $30.4 million in cash and seeks to extend its runway.
• Positive Sentiment: The core hernia business showed encouraging demand, with global OviTex unit volume up 12% year over year and OviTex revenue up 6.6%. Management plans to emphasize complex abdominal-wall procedures and larger products to offset pressure from the shift toward smaller robotic-repair units.
• Positive Sentiment: International revenue increased 26% and LIQUIFIX revenue rose 39% year over year. Management expects PRS recovery in the second half following the discontinuation of a dedicated-representative pilot, broader sales-force training, and re-engagement with key surgeons.
• Neutral Sentiment: Heather Getz became CEO and a director, succeeding founder Antony Koblish, and said her priorities include commercial execution, customer relationships, and a financial and operational transformation.

TELA Bio Stock Performance

TELA stock opened at $0.93 on Tuesday. The company has a quick ratio of 2.92, a current ratio of 3.61 and a debt-to-equity ratio of 8.82. The firm has a market cap of $41.64 million, a PE ratio of -1.18 and a beta of 1.34. The business has a 50 day moving average of $0.80 and a 200-day moving average of $0.81. TELA Bio has a 12-month low of $0.50 and a 12-month high of $2.14.

Analyst Ratings Changes

Separately, Weiss Ratings restated a “sell (e+)” rating on shares of TELA Bio in a report on Friday, July 17th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $2.20.

Institutional Investors Weigh In On TELA Bio

A number of hedge funds have recently modified their holdings of TELA. XTX Topco Ltd purchased a new stake in shares of TELA Bio during the 4th quarter valued at approximately $48,000. Citadel Advisors LLC grew its stake in TELA Bio by 161.3% in the 3rd quarter. Citadel Advisors LLC now owns 35,281 shares of the company’s stock valued at $53,000 after buying an additional 21,781 shares in the last quarter. Susquehanna International Group LLP raised its holdings in TELA Bio by 551.2% during the 3rd quarter. Susquehanna International Group LLP now owns 85,763 shares of the company’s stock valued at $128,000 after acquiring an additional 72,594 shares during the period. Finally, Renaissance Technologies LLC raised its holdings in TELA Bio by 101.4% during the 4th quarter. Renaissance Technologies LLC now owns 128,700 shares of the company’s stock valued at $152,000 after acquiring an additional 64,800 shares during the period. Institutional investors own 94.35% of the company’s stock.

TELA Bio Company Profile

TELA Bio, Inc (NASDAQ: TELA) is a commercial‐stage medical technology company headquartered in Malvern, Pennsylvania. The company is focused on developing, manufacturing and commercializing regenerative medicine and advanced soft tissue repair solutions. By integrating proprietary biomaterials and processing technologies, TELA Bio aims to offer products that support the body’s natural healing processes in wound closure, hernia repair, reconstructive surgery and other surgical specialties.

The company’s product portfolio includes acellular dermal matrices, hemostatic agents and tissue scaffold systems.