ESTA Earnings Prediction
The chart below shows how ESTA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ESTA sees a +1.63% change in stock price 10 days leading up to the earnings, and a +3.84% change 10 days following the report. On the earnings day itself, the stock moves by -0.60%. This data can give you a slight idea of what to expect for the next quarter's release.
ESTA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
44.51M
41.05%
10.66%
Gross Margin
68.50%
5.03%
7.15%
Operating Margin
-41.94%
-40.15%
28.41%
Net Margin
-77.57%
19.17%
87.05%
EPS
-1.19
-50.63%
101.69%
No Data Available
ESTA Earnings Analysis
Establishment Labs Holdings Inc Corporation (ESTA.O) Earnings Conference Call
Positive
Q4 Revenue Increase: Revenue in Q4 2024 totaled $44.5 million, aligning with expectations and showing a 41% increase from the previous year.
Sales Growth Forecast: Full year sales reached $166 million, with a forecast for 2025 guidance between $205 million and $210 million, indicating a 25% growth.
Strong Sales Launch: US sales totaled $3.3 million in the first two months of the launch, exceeding preannounced expectations, showcasing a strong start.
Cost Management Success: Operating expenses were reduced by $12.5 million in 2024 compared to 2023, demonstrating effective cost management.
EBITDA Loss Improvement: EBITDA loss improved to $13.1 million in Q4 2024 from $17.4 million in Q4 2023, indicating progress towards profitability.
Positive EBITDA Milestone: The company is on track to achieve its first positive EBITDA quarter in 2025, supported by the US launch and gross margin expansion.
Latin America Revenue Outlook: Global demand is stabilizing, with flat revenue in Latin America and a gradual return to growth expected in 2025.
Market Acceptance Success: The US commercial team has onboarded over 650 accounts, with 450 placing orders and an 88% reorder rate, indicating strong market acceptance.
US Market Order Growth: Momentum in the US market is building, with an increase in daily orders from 32 in November to an expected 90 in February.
Brand Visibility Enhancement: The company has received significant media attention, with over 1.8 billion impressions from organic marketing efforts, enhancing brand visibility.
Flora's Impact on Women's Health: Flora, the unique tissue expander, is gaining traction in cancer centers, contributing positively to women's health outcomes.
Celebrity Partnership Impact: The partnership with an A-List celebrity is expected to enhance brand recognition and market penetration.
Rapid Expansion and Revenue Growth: Mia Femtech is expanding rapidly, with over 60 clinics certified in less than 18 months and projected revenue of $8 million to $10 million in 2025.
Product Launch Success: The introduction of Preservé is resonating well in Brazil, with significant interest and orders received shortly after launch.
GLP-1 Market Opportunity: The company is well-positioned to benefit from the growing GLP-1 market, which is expected to expand demand for breast augmentation.
Market Expansion Strategy: Establishment Labs has established a strong presence in China, with a strategic partnership to support growth and market share gains.
Negative
Projected Revenue Growth 2025: Revenue growth is projected at 23% to 26% for 2025, but this is contingent on the performance of the U.S. market, which is still uncertain.
Global Demand Disparities: Despite a strong start in the U.S., the overall global demand remains uneven, particularly in Latin America, which has shown continued weakness.
Operating Expenses Surge: Operating expenses increased significantly in Q4 2024, rising to $44 million from $36.9 million in Q4 2023, primarily due to the ramp-up of U.S. commercial activities.
Net Loss Improvement: The company reported a net loss of $18.7 million in Q4 2024, although this was an improvement from a net loss of $22.1 million in the same period last year.
High Cash Usage Forecast: Cash usage in Q4 was high at $22.6 million, and the company anticipates that the first quarter will also see high cash usage due to investments in the U.S. commercial efforts.
Foreign Exchange Impact: The company is facing foreign exchange headwinds, which are expected to negatively impact reported sales results by approximately $2 million to $3 million in 2025.
CEO Retirement Announcement: The CEO announced his retirement effective March 1, 2025, which may create uncertainty in leadership and strategic direction moving forward.
ESTA FAQs
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ESTA Earning Call Sentiment
Establishment Labs Holdings Inc. (ESTA) Q4 2024 Earnings Call Transcript
ESTA.O
6.38%Positive
The earnings call highlights several positive factors: a 41% revenue increase, improved gross profit margins, and reduced net loss and EBITDA loss compared to the previous year. The company has a strong cash position and expects significant revenue growth in 2025. However, competitive pressures and foreign currency volatility pose risks. The absence of a shareholder return plan is offset by operational improvements and positive guidance. Given the small market cap, these factors suggest a positive stock price movement of 2% to 8% over the next two weeks.
