Establishment Labs Holdings Inc. (ESTA) Reports Q3 Loss, Misses Revenue Estimates

Financial Performance - Establishment Labs Holdings Inc. reported a quarterly loss of $0.59 per share, which was better than the Zacks Consensus Estimate of a loss of $0.61, and an improvement from a loss of $1.12 per share a year ago, indicating a 47.3% year-over-year improvement [1] - The company posted revenues of $40.23 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.92%, but showing an increase from $38.51 million in the same quarter last year [2] - The current consensus EPS estimate for the coming quarter is -$0.43 on revenues of $52.94 million, and for the current fiscal year, it is -$2.27 on revenues of $174.83 million [7] Market Performance - Establishment Labs shares have increased approximately 88.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 24.3% [3] - The company has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Industry Outlook - The Medical Services industry, to which Establishment Labs belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Establishment Labs' stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Future Expectations - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Establishment Labs is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6]