laboratory test tubes

Vericel (NasdaqCM:VCEL) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Vericel Corporation (NasdaqCM:VCEL) is scheduled to report Q3 earnings results on November 5, 2020.

The company is expected to report earnings of -$0.03/share on revenue of $30.983 million. The consensus earnings per share (EPS) of -$0.03/share is based on a poll of 6 analysts and represents a decline in eps of −135.7% over the same quarter last year, when the company reported earnings of $0.07/share.

The revenue forecast of $30.983 million based on a poll of 7 analysts implies a year-over-year (YoY) growth in revenue of 1.6%. Last year the company reported $30.499 million in revenue for the quarter.

Expected to report EPS of -$0.03/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $30.98 $30.50 1.6%
EPS -$0.03 $0.07 −135.7%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 2 quarters.

What are your expectations from Vericel Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.20 -$0.18 10.9% Beat
Q1, 2020 -$0.08 -$0.10 -22.4% Missed
Q4, 2019 $0.20 $0.20 0% Met
Q3, 2019 -$0.02 $0.07 519.9% Beat
Q2, 2019 -$0.06 -$0.05 16.7% Beat
Q1, 2019 -$0.07 -$0.07 0% Met
Q4, 2018 $0.04 $0.13 213.6% Beat
Q3, 2018 -$0.11 -$0.02 81.1% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −9.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $16.82 $15.17 −9.8% Decline
May 5, 2020 $14.02 $14.80 5.6% Increase
February 25, 2020 $18.89 $15.04 −20.4% Decline
November 5, 2019 $16.25 $18.74 15.3% Increase

Fundamentals And Technical Analysis

Vericel Corporation is currently trading at $18.53/share, down −1.6% for the day. The company is trading at approximately 83.2% of its 52-week high of $22.26/share. The company’s stock price is up 22.1% since the last earnings report and down −10.7% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 38.50 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqCM:VCEL Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −279,496.65 and a forward P/E multiple of −152.10.

Vericel Corporation’s current share price also implies a price-to-book (P/B) multiple of 7.79. The following table summarizes some other key fundamental ratios:

Data as of November 1, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $18.53
P/E Ratio −279,496.6x
P/E Ratio (Fwd) −152.1x
Price To Sales 7.2x
Total Debt / Total Capital 3.0%
Levered Free Cash Flow $10.129 million
EV / EBITDA 785.9x

Finbox

Vericel Corporation is a small-cap stock with a market capitalization of $838.5 million and a total enterprise value of $784.3 million. The company operates in the Healthcare sector and the Biotechnology industry.

Vericel Corporation, a commercial-stage biopharmaceutical company, researches, develops, manufactures, and distributes cellular therapies for sports medicine and severe burn care markets in the United States. It markets autologous cell therapy products comprising MACI, an autologous cellularized scaffold product for the repair of symptomatic, and single or multiple full-thickness cartilage defects of the knee; and Epicel, a permanent skin replacement humanitarian use device for the treatment of patients with deep-dermal or full-thickness burns. The company also develops ixmyelocel-T, a patient-specific multicellular therapy that has completed Phase IIb clinical trial for the treatment of advanced heart failure due to dilated cardiomyopathy. In addition, its preapproval stage product includes, NexoBrid, a registration-stage biological orphan product for debridement of severe thermal burns. The company was formerly known as Aastrom Biosciences, Inc. Vericel Corporation was founded in 1989 and is headquartered in Cambridge, Massachusetts.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.