Kyphon has the look of a juggernaut
BY EDITOR, NOVEMBER 3, 2003
KYPH, as it has each quarter since coming public, significantly outperformed both sales and earnings expectations last quarter. The numbers tell the story:
- $35.1 million in sales vs. $33.6 estimate and $20.7 million for the same period the year before.
- Operating income of $4.9 million vs. $2.1 million estimate and a loss in the prior year.
- EPS (pre-tax) of $0.11 vs. our $0.06 estimate ($0.04 was consensus) and a loss in the prior year.
What drove results above expectations? The large (145 people), increasingly experienced and focused sales force plus the large, still underserved market for percutaneous treatment of vertebral compression fractures.
For this year, Kyphon will probably rack up $126 million in sales and $0.33 in earnings per share. Three years from now, we estimate Kyphon could well be posting a quarter billion in sales, $50 million in operating income and have as much as a compression fractures (like trauma, oncology and drug or biologics delivery).
