TELA Bio (NASDAQ:TELA) Posts Quarterly Earnings Results, Misses Estimates By $0.03 EPS

TELA Bio (NASDAQ:TELA) announced its quarterly 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. The firm had revenue of $19.29 million for the quarter, compared to analysts’ expectations of $20.01 million. TELA Bio had a negative return on equity of 1,320.81% and a negative net margin of 49.30%.

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 Price Performance

NASDAQ TELA traded up $0.06 on Monday, hitting $0.93. The company had a trading volume of 382,824 shares, compared to its average volume of 164,080. The company has a market capitalization of $41.64 million, a PE ratio of -1.18 and a beta of 1.34. The company’s fifty day moving average price is $0.80 and its 200-day moving average price is $0.81. The company has a debt-to-equity ratio of 8.82, a current ratio of 3.61 and a quick ratio of 2.92. TELA Bio has a 12-month low of $0.50 and a 12-month high of $2.14.

Hedge Funds Weigh In On TELA Bio

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC raised its position in shares of TELA Bio by 101.4% during the 4th quarter. Renaissance Technologies LLC now owns 128,700 shares of the company’s stock worth $152,000 after purchasing an additional 64,800 shares during the last quarter. Susquehanna International Group LLP increased its stake in TELA Bio by 551.2% during the 3rd quarter. Susquehanna International Group LLP now owns 85,763 shares of the company’s stock worth $128,000 after buying an additional 72,594 shares in the last quarter. Citadel Advisors LLC raised its holdings in shares of TELA Bio by 161.3% during the third quarter. Citadel Advisors LLC now owns 35,281 shares of the company’s stock valued at $53,000 after acquiring an additional 21,781 shares during the last quarter. Finally, XTX Topco Ltd acquired a new position in shares of TELA Bio during the fourth quarter valued at approximately $48,000. 94.35% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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

About TELA Bio

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.