Core Viewpoint - PROCEPT BioRobotics Corporation (PRCT) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Revisions - The Zacks rating system is centered around the changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts for the current and following years [2]. - Rising earnings estimates for PROCEPT BioRobotics indicate an improvement in the company's underlying business, which is expected to drive stock price appreciation [6][9]. - The company is projected to earn -$1.75 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 21.9% [9]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [10][11]. Market Implications - The upgrade of PROCEPT BioRobotics to a Zacks Rank 1 positions it among the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. - The correlation between earnings estimate revisions and near-term stock movements highlights the importance of tracking these revisions for investment decisions [7].

Company Overview - PROCEPT BioRobotics is a surgical robotics company focused on advancing patient care through transformative solutions in urology [3] - The HYDROS™ Robotic System is the only AI-Powered robotic technology that delivers Aquablation therapy, designed for effective, safe, and durable outcomes for males suffering from lower urinary tract symptoms (LUTS) due to benign prostatic hyperplasia (BPH) [3] - BPH is the most common prostate disease, affecting approximately 40 million men in the United States [3] - The company has developed a significant body of clinical evidence with over 150 peer-reviewed publications supporting the benefits and clinical advantages of Aquablation therapy [3] Upcoming Events - Management will present at the 36th Annual Piper Sandler Healthcare Conference in New York City on December 4 at 8:30 a.m. Eastern Time [1] - A live webcast of the event will be available on the company's website, with archived recordings accessible for at least 90 days post-event [2]

Core Insights - PROCEPT BioRobotics Corporation (NASDAQ: PRCT) has seen a stock increase of 20% following recent fundamental updates, now trading at approximately 16 times forward sales and 20 times book value as investors reassess the value of its equity [1] Group 1 - The stock's performance reflects a positive reappraisal by investors regarding the company's equity value [1] - The current trading multiples indicate a strong market interest and potential growth outlook for PROCEPT BioRobotics [1]

Company Overview - PROCEPT BioRobotics Corporation (PRCT) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Price Performance - PRCT shares have increased by 34.2% over the past week, while the Zacks Medical - Instruments industry remained flat during the same period [6] - Over the past month, PRCT's price change is 32.49%, significantly outperforming the industry's 2.19% [6] - In the last quarter, PRCT shares rose by 52.15%, and over the past year, they gained 198.93%, compared to the S&P 500's increases of 13.52% and 37.4%, respectively [7] Trading Volume - The average 20-day trading volume for PRCT is 1,193,537 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 6 earnings estimates for PRCT have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from -$1.88 to -$1.74 [10] - For the next fiscal year, 5 estimates have moved upwards, with 1 downward revision during the same period [10]

Group 1 - PROCEPT BioRobotics Corporation announced a public offering of 1,923,076 shares of common stock at a price of $91.00 per share, aiming for gross proceeds of approximately $175 million [1] - A selling stockholder has granted underwriters a 30-day option to purchase an additional 288,461 shares at the public offering price [1] - The offering is expected to close on or about October 31, 2024, subject to customary closing conditions [1] Group 2 - BofA Securities, Piper Sandler, and Morgan Stanley are acting as joint book-running managers for the offering [2] - The securities are being offered under an effective shelf registration statement filed with the SEC on August 1, 2023 [2] Group 3 - PROCEPT BioRobotics focuses on developing transformative solutions in urology, including the AQUABEAM® and HYDROS™ Robotic Systems [5] - The HYDROS Robotic System is noted as the only AI-powered robotic technology delivering Aquablation therapy, which is designed for effective treatment of lower urinary tract symptoms due to BPH [5] - BPH affects approximately 40 million men in the United States, highlighting the market potential for PROCEPT BioRobotics' solutions [5]

PROCEPT BioRobotics Corporation (PRCT) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and followin ...

SAN JOSE, Calif., Oct. 28, 2024 (GLOBE NEWSWIRE) -- PROCEPT BioRobotics® Corporation (NASDAQ: PRCT) ("PROCEPT BioRobotics" or the "Company"), a surgical robotics company focused on advancing patient care by developing transformative solutions in urology, today announced the commencement of an underwritten public offering of $175,000,000 of shares of its common stock. A selling stockholder also expects to grant the underwriters a 30-day option to purchase up to an additional $26,250,000 of shares of the Comp ...

Core Insights - PROCEPT BioRobotics reported better-than-expected third-quarter earnings with an EPS loss of $(0.40), improving from $(0.51) a year ago and beating the consensus loss of $(0.49) [1] - The company achieved third-quarter sales of $58.4 million, representing a 66.3% year-over-year increase, surpassing the consensus estimate of $53.18 million [1][2] Revenue Drivers - The sales increase was primarily driven by higher system sales, increased average selling prices, and a rise in handpiece and consumable revenue [2] - U.S. handpiece and consumable revenue for Q3 2024 reached $29.6 million, a 74% increase year-over-year [2] - U.S. system revenue for Q3 2024 was $19.6 million, reflecting a 46% increase [3] Operational Metrics - As of September 30, the U.S. install base of robotic systems stood at 445 systems [3] - Gross margin for Q3 was 63.2%, up from 53.8% a year ago, attributed to improved overhead absorption and higher average selling prices [3] Future Guidance - PROCEPT BioRobotics projects 2024 revenue between $222.5 million and $223 million, an increase from prior guidance of $217 million and consensus of $217.06 million [3][4] - The company anticipates a 2024 gross margin of approximately 61%, up from previous guidance of 59% [4] - Adjusted EBITDA for the full year 2024 is projected at $(60.0) million, an improvement from the previous guidance of $(67.5) million [4] Market Outlook - Analysts express optimism regarding the strong underlying demand for Aquablation, with the U.S. market expected to reach only 10% penetration by the end of 2024 [4] - Utilization growth is estimated at 7%, alongside the launch of the new Hydros system and potential catalysts in prostate cancer treatment [4] - William Blair maintains an Outperform rating on the stock, which saw a price increase of 28.50% to $88.36 [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $58.4 million, representing a growth of 66% compared to Q3 2023 [7][24] - U.S. revenue for the quarter was $52.2 million, reflecting a growth of 62% year-over-year [24] - Gross margin reached an all-time high of 63.2%, driven by strong execution and higher average selling prices [29] - Net loss for Q3 2024 was $21 million, an improvement from a loss of $24.6 million in the same period last year [31] - Adjusted EBITDA loss was $12.4 million, compared to a loss of $19.4 million in Q3 2023 [32] Business Line Data and Key Metrics Changes - Sold 45 robotic systems in Q3 2024, with approximately 80% being HYDROS systems [25] - U.S. handpiece and consumable revenue was $29.6 million, representing a growth of 74% year-over-year [27] - International revenue was $6.2 million, showing a growth of 121% compared to the previous year [28] Market Data and Key Metrics Changes - U.S. installed base of robotic systems grew to 445, a 64% increase from the prior year [7] - International revenue growth was primarily driven by strong sales momentum in the United Kingdom [10] Company Strategy and Development Direction - The company is focused on the commercial launch of the HYDROS Robotic Systems, which is expected to drive widespread adoption and improve patient outcomes [12][17] - A new randomized clinical study for prostate cancer has been initiated, with the goal of expanding the market for Aquablation therapy [18][21] - The company aims to become the standard-of-care for BPH and a leading global neurology company [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends, including system average selling prices and customer demand [14] - The company anticipates challenges in Q4 due to sales team training and macro factors affecting procedures [46][47] - Management remains optimistic about the long-term growth potential and profitability, emphasizing the importance of controlling operating expenses [71] Other Important Information - The company expects full-year 2024 total revenue to be in the range of $222.5 million to $223 million, representing growth of approximately 63% to 64% compared to 2023 [33] - Full-year 2024 gross margins are now expected to be approximately 61%, an increase from previous guidance [35] Q&A Session Summary Question: Comments on HYDROS pricing and customer reaction - Management noted that customer reactions to HYDROS have been extremely positive, with excitement around its features [41] - They are maintaining pricing flexibility for the fourth quarter, with expected ASPs in the range of $420,000 to $430,000 [43] Question: Utilization trends and impact of sales rep training - Management acknowledged that removing reps from the field for training would impact utilization, but they saw strong procedure activity in September [45][46] Question: Sales rep training and procedure delays - The majority of launches for HYDROS are scheduled for Q4, with training impacting the timing of procedures but not leading to lost cases [54] Question: Replacement cycle and market opportunity - Management indicated that the focus remains on new accounts for 2024, with discussions of a replacement cycle expected in 2025 [57][61] Question: Reimbursement dynamics and Medicare audits - Management addressed concerns about Medicare audits and noted that they are working to resolve size restrictions with payers [83][85]

PROCEPT BioRobotics Corporation (PRCT) came out with a quarterly loss of $0.40 per share versus the Zacks Consensus Estimate of a loss of $0.48. This compares to loss of $0.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this company would post a loss of $0.52 per share when it actually produced a loss of $0.50, delivering a surprise of 3.85%. Over the last four quarters, the com ...