Intersect ENT Dips 4% On Wider-Than-Expected 4Q Loss, Beats On Revenues


Intersect ENT dropped 4.4% after the medical device company reported a worse-than-feared loss in the fourth quarter. However, revenues topped analysts’ expectations.

Intersect ENT (XENT) incurred an adjusted loss of $0.54 per share in 4Q, compared to the $0.32 loss per share estimated by analysts. Total sales generated in the quarter amounted to $28.23 million, versus the consensus estimate of $27.92 million.

Nonetheless, total revenues declined 11.3% year-over-year, impacted by lower PROPEL revenue due to the impact of COVID-19 on elective sinus procedures. However, increased SINUVA revenue partly mitigated the decline.

Intersect ENT President and CEO Thomas A. West said, “We are well-positioned to return to growth in 2021 by building on the strength of PROPEL, SINUVA, and our expanding product portfolio while targeting office-based procedures and increasing our international market presence.” (See Intersect ENT stock analysis on TipRanks)

For 2021, the company projects total revenue to land between $116 million to $120 million, and gross margins to be in the range of low-to-mid 70%.

Following the 4Q results, BTIG analyst Ryan Zimmerman maintained a Buy rating and a price target of $32 (44.4% upside potential) on the stock.

The analyst expects “upside to FY21 expectations when considering the composition of XENT’s reformed business from multiple product families; PROPEL, SINUVA, Fiagon, and PROPEL in-office and OUS.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 2 analysts suggesting a Buy and 2 analysts recommending a Hold. The average analyst price target of $28 implies more than 26% upside potential to current levels. Shares have increased almost 22% over the past six months.

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