On Thursday, Canaccord Genuity maintained a Buy rating on Pulmonx Corp. (NASDAQ:LUNG) and increased the price target to $16.00 from the previous $15.00. This adjustment follows Pulmonx's second-quarter revenue report, which surpassed both the analyst's and the consensus estimates.
The company achieved a 21% year-over-year increase in revenue, posting $20.8 million against the anticipated $19.6 million by Canaccord and $20.1 million by consensus.
Pulmonx's earnings per share (EPS) for the quarter was reported at ($0.39), which is more favorable than both Canaccord's estimate of ($0.47) and the consensus estimate of ($0.42).
The company's disciplined approach to operating expenses, especially in sales, general, and administrative costs (SG&A), contributed to this outcome.
In the United States, Pulmonx's revenue reached $13.9 million, exceeding Canaccord's forecast of $13.6 million. Additionally, the company expanded its reach by adding 17 centers in the second quarter, surpassing the 11 centers anticipated by the analyst.
The management team at Pulmonx reiterated their strategy, focusing on a three-pronged approach in the U.S. market. They are making investments to enhance workflow, aiming to boost utilization at existing accounts, which is currently the main focus of their sales strategy.
Despite the company's strong performance, management has chosen to reiterate its full-year 2024 guidance, opting for a conservative stance due to historical unpredictability in seasonal demand, particularly in the U.S. market.
In light of Pulmonx's consistent strong execution and what Canaccord Genuity views as an attractive valuation, the firm has reaffirmed its Buy rating and adjusted the price target upward.
The company's focus on improving utilization at existing centers and its disciplined expense management are among the key factors influencing this positive outlook.
In other recent news, Pulmonx Corp. has been making significant strides in its financial performance. The company reported a 21% year-over-year increase in its second-quarter revenue, which exceeded both Canaccord Genuity's and the consensus estimates. This achievement was largely attributed to the company's disciplined approach to operating expenses and its successful expansion into new centers.
Furthermore, Lake Street Capital Markets initiated coverage on Pulmonx with a Buy rating, following a considerable drop in the company's stock value due to a CEO change. The firm sees this as an opportunity for the stock to realign with comparable companies as investor confidence is bolstered by strong performance.
Meanwhile, Canaccord Genuity maintained a Buy rating on Pulmonx and adjusted the price target upward, despite the company's decision to reiterate its full-year 2024 guidance. The firm highlighted Pulmonx's ongoing commercial efforts in the U.S. and its post-approval study in Japan, among other factors, as reasons for its positive outlook.
Lastly, Pulmonx reported a robust start to 2024 with a 30% increase in worldwide sales. The company's growth is underpinned by the expansion of its Zephyr Valve treatment centers and strategic initiatives aimed at driving awareness and adoption of its innovative Zephyr Valve technology. These are the recent developments that investors should be aware of.
InvestingPro Insights
Real-time data from InvestingPro reflects Pulmonx Corp's (NASDAQ:LUNG) current market dynamics. The company holds a market capitalization of $268.22 million, indicating its size within the market. Despite recent challenges, Pulmonx's revenue has shown resilience with a growth of 27.14% over the last twelve months as of Q1 2024. This aligns with the company's reported year-over-year increase in revenue, underscoring its ability to expand its financial base.
InvestingPro Tips highlight that the stock has experienced significant volatility, with a notable decline over the last week and six months. Nonetheless, two analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism for the company's future performance. This could be a sign of confidence in Pulmonx's strategy and execution, despite analysts not anticipating profitability this year. Additionally, Pulmonx's liquid assets surpass its short-term obligations, which may provide some financial flexibility in the near term.
For those interested in a deeper analysis, InvestingPro offers additional tips on Pulmonx Corp, providing investors with a comprehensive view of the company's financial health and market position.
It's worth noting that Pulmonx does not pay a dividend, which may influence investment decisions for those seeking regular income from their holdings. The company's strategy and financial metrics can be further explored with additional insights available on InvestingPro, which includes more tips for a detailed investment analysis.
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