Rxsight Reports Q1 2024 Earnings, Surpasses Revenue Estimates and Expects Strong Growth

Stifel Nicolaus's Thomas Stephan raised their price target on Rxsight (NASDAQ: RXST) by 6.3% from $64 to $68 on 2024/05/06. The analyst maintained their Strong Buy rating on the stock.

Rxsight, the ophthalmic technology company known for its light adjustable intraocular lenses (LAL) used in cataract surgery, recently reported its Q1 2024 earnings. Stephan attributed their price target hike to "key takeaways from the company's 2023 10-K and thoughts on consumer sentiment, valuation, and IOL market statistics."

For the first quarter of 2024, Rxsight reported a loss per share of $0.1, an improvement from Q1 2023's $(0.31). The company's revenue for the quarter came in at $29.5 million, surpassing the consensus estimate of $27.56 million by 68.6%. This also marked a significant increase from Q1 2023's $17.5 million. Rxsight's gross margin for the quarter was 70%, up from 59% in the same period last year. However, operating expenses rose by 34% year-over-year to $31.4 million.

Looking ahead, Rxsight's management provided guidance for FY 2024. They expect revenue to range between $132 million and $137 million, representing growth of 48% to 54% compared to the previous year. This revised guidance is higher than their earlier projection of $128 million to $135 million. Additionally, the company anticipates a gross margin of 68% to 70%, indicating an increase of 800 basis points to 1,000 basis points from their previous guidance of 65% to 67%. Operating expenses are projected to be in the range of $126 million to $130 million, reflecting a 21% to 25% increase from the previous guidance of $125 million to $128 million.

President & CEO Ron Kurtz expressed his satisfaction with the company's strong start to the year, driven by the continued adoption of their Light Adjustable Lens technology. He stated, "With the growing number of doctors and practices offering the LAL as well as increasing interest among patients, we believe we are establishing a new standard for premium IOL offerings in the U.S."

The analyst rating for Rxsight is overwhelmingly positive, with 100% of top-rated analysts currently rating the stock as a Strong Buy or Buy. No analysts see it as a Hold, and no analysts recommend or strongly recommend selling the stock.

Year-over-year, Rxsight's stock has witnessed significant growth, surging by 223.8%. This outpaces the performance of the S&P 500, which has seen a 25.2% increase during the same period.

Thomas Stephan, the Stifel Nicolaus analyst who raised the price target on Rxsight, has earned a reputable ranking among Wall Street analysts. According to WallStreetZen, Stephan is placed in the top 22% out of 4,575 analysts, boasting an average return of 17.4% and a win rate of 70.6%. With a specialization in the Healthcare sector, Stephan's analysis carries weight within the industry.

RxSight Incorporated, headquartered in Aliso Viejo, CA, was founded in 1997. The company focuses on the development of its FDA-approved proprietary RxSight Light Adjustable Lens system, which enables doctors to customize and optimize visual acuity for patients after cataract surgery. The system consists of the Light Adjustable Lens (LAL), a Light Delivery Device (LDD), and various accessories. Rxsight's innovative technology has positioned them as the first and only commercially available intraocular lens technology of its kind in the market.

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