electroCore (NASDAQ:ECOR) Posts Quarterly Earnings Results, Meets Expectations

electroCore (NASDAQ:ECOR) released its earnings results on Wednesday. The company reported ($0.59) EPS for the quarter, hitting analysts’ consensus estimates of ($0.59), Zacks reports. The company had revenue of $9.58 million for the quarter, compared to analysts’ expectations of $9.01 million. electroCore had a negative return on equity of 1,956.38% and a negative net margin of 43.60%.

Here are the key takeaways from electroCore’s conference call:

• Record quarter — $9.6M revenue (+43% YoY) with an 87% gross margin and a 24% improvement in adjusted EBITDA loss to $2.3M, which management cites as evidence of emerging operating leverage.
• The VA remains the largest growth driver — prescription device revenue rose 48% and ~15,000 VA patients have received devices (estimated ~2.5% penetration), signaling substantial upside as the new COO focuses on increasing per-site utilization.
• Clinical and regulatory catalysts could expand indications — PTSD has Breakthrough Device designation, Acacia trial enrollment is underway, and recent publications support NVNS benefits, which management plans to aggregate for a potential PTSD label.
• Consumer channel momentum — Truvaga revenue was ~$1.5M (+38% YoY) with improved ROAS (~2.37) and a January U.K. soft launch, while next?gen mobile features are being developed to pursue recurring revenue.
• Cash and profitability pressure — cash and equivalents fell to ~$8.8M from $11.6M, Q1 was the company’s highest burn quarter, GAAP net loss widened to $5.3M (including $1.9M one?time transition costs), and management is evaluating capital options.

electroCore Price Performance

NASDAQ ECOR traded down $0.39 on Thursday, reaching $6.27. 62,283 shares of the company’s stock traded hands, compared to its average volume of 67,723. The stock has a market cap of $50.66 million, a PE ratio of -3.80 and a beta of 0.68. The stock has a 50-day simple moving average of $6.60 and a 200 day simple moving average of $5.87. electroCore has a 12 month low of $4.16 and a 12 month high of $8.64.

Insider Buying and Selling at electroCore

In other electroCore news, Director Daniel S. Goldberger sold 16,072 shares of electroCore stock in a transaction that occurred on Friday, April 10th. The stock was sold at an average price of $6.02, for a total value of $96,753.44. Following the transaction, the director directly owned 291,471 shares of the company’s stock, valued at $1,754,655.42. The trade was a 5.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 13.80% of the company’s stock.

Hedge Funds Weigh In On electroCore

Hedge funds have recently made changes to their positions in the business. Two Sigma Investments LP raised its stake in electroCore by 20.8% in the third quarter. Two Sigma Investments LP now owns 24,603 shares of the company’s stock worth $122,000 after buying an additional 4,231 shares in the last quarter. Cubist Systematic Strategies LLC bought a new stake in shares of electroCore in the 1st quarter worth $153,000. Jane Street Group LLC raised its stake in shares of electroCore by 114.4% in the first quarter. Jane Street Group LLC now owns 36,726 shares of the company’s stock worth $246,000 after purchasing an additional 19,599 shares during the last quarter. DRW Securities LLC purchased a new stake in shares of electroCore during the fourth quarter valued at $264,000. Finally, NewEdge Advisors LLC lifted its stake in electroCore by 857.9% during the 1st quarter. NewEdge Advisors LLC now owns 161,955 shares of the company’s stock valued at $1,083,000 after acquiring an additional 145,047 shares during the period. 26.74% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts recently weighed in on ECOR shares. Zacks Research upgraded shares of electroCore from a “strong sell” rating to a “hold” rating in a research report on Friday, March 27th. raised shares of electroCore to a “strong-buy” rating in a research report on Tuesday, February 3rd. HC Wainwright lowered their price target on shares of electroCore from $25.00 to $18.00 and set a “buy” rating on the stock in a report on Monday, January 26th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of electroCore in a research note on Friday, March 27th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $18.00.

electroCore Company Profile

electroCore, Inc is a commercial-stage bioelectronic medicine company headquartered in Rockaway, New Jersey. The company specializes in the development and commercialization of non-invasive vagus nerve stimulation (nVNS) therapies designed to address a variety of neurological and inflammatory conditions. Established in 2006, electroCore has focused its efforts on translating neuromodulation science into a compact, patient-administered treatment device.

The company’s lead product, gammaCore®, is a handheld, battery-powered device that delivers nVNS through the skin to the cervical branch of the vagus nerve.