SI-BONE, Inc. (SIBN) reported a wider-than-expected loss in the second quarter driven by increased marketing, R&D, and stock-based compensation expenses. Shares closed marginally down at $30.26 on August 2.
SI-BONE is a medical device company focusing on the research and development of minimally invasive surgical implant systems to treat sacroiliac joint dysfunction that causes lower back pain. (See SI-BONE stock charts on TipRanks)
The company reported a loss of $0.42 per share, slightly better than the loss of $0.44 per share recorded in the prior-year period. Analysts had estimated a loss of $0.39 per share.
Revenue came in at $22.19 million, up 58% year-over-year, and beat the Street’s estimates of $21.96 million.
The company also announced exclusive coverage by health insurance provider Anthem, Inc. Under the agreement, Anthem will cover minimally invasive SI joint fusion surgeries when performed with SIBN’s iFuse implant system, starting July 30.
Laura Francis, CEO of the company, said, “As the recovery progresses and the operating environment continues to normalize, our planned investments across product innovation, sales force expansion, surgeon engagement, and patient awareness position us to accelerate market expansion and further extend our leadership as a sacropelvic surgical solutions company.”
For the full year 2021, the company projects revenue to fall in the range of $92 – $94 million, while the consensus estimate for revenue is $93.69 million.
Following the results, BofA Securities analyst Bob Hopkins reiterated a Buy rating on the stock with a price target of $43, implying 42.1% upside potential.
Hopkins said, “SIBN called out vacations and their higher exposure to the outpatient setting and Covid as reasons why Q2 didn’t show better results and why they seem a little cautious on Q3, but in our view, this market development story just needs a little more time to mature before it can inflect.”
The analyst believes that SIBN could turn the iFuse into a large market opportunity for the treatment of SI joint pain.
With 6 unanimous Buys, the stock has a Strong Buy consensus rating. The average SI-BONE price target of $40.67 implies 34.4% upside potential to current levels. Shares have gained 73.1% over the past year.
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