On Wednesday, Canaccord Genuity restated their Buy rating on shares of Vericel (NASDAQ:VCEL) Corporation (NASDAQ:VCEL) shares, maintaining a price target of $64.00. According to InvestingPro data, the stock is currently trading near its 52-week high of $61.49, with an impressive one-year return of over 53%. The company's overall financial health score is rated as "GREAT," supported by strong liquidity metrics.
The reaffirmation comes after Vericel disclosed preliminary revenue figures for the fourth quarter of 2024, which fell short of both Canaccord's and the consensus estimates. The company reported that its Q4 revenue is expected to land between $75.2 million and $75.7 million, compared to the anticipated $77.0 million by Canaccord and the consensus projection of $77.9 million.
Despite the overall revenue shortfall, Vericel's MACI product generated between $68.2 million and $68.7 million in revenue, surpassing Canaccord's estimate of $67.9 million. This represents a growth of 20-21% from the previous year and approximately 53% growth from the third quarter. The company maintains a healthy gross profit margin of 71.5% and operates with a moderate debt level, as revealed by InvestingPro's comprehensive financial analysis.
However, Epicel revenue was approximately $6 million, not meeting the $7.8 million estimate by Canaccord and the $8.2 million consensus. Moreover, NexoBrid revenue was reported at $1 million, below the $1.2 million and $1.3 million expected by Canaccord and consensus, respectively.
For the full year of 2024, Vericel anticipates its revenue to be in the range of $237.0 million to $237.5 million. This forecast also falls below Canaccord's projection of $238.9 million and the consensus estimate of $239.8 million. Despite this, the expected full-year revenue suggests a 20% increase over the fiscal year 2023.
Looking ahead to fiscal year 2025, Vericel projects total revenue growth of 20-23%, which would mean expected revenue of $284.4 million to $292.1 million. Prior to the release of these preliminary results, Canaccord and consensus estimates indicated a growth of 21.8% and 22.5%, respectively, which would have implied a forecast of $291.0 million and $293.7 million.
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In other recent news, Vericel Corporation's preliminary Q4 revenue fell short of analyst expectations, with total revenue falling between $75.2 million and $75.7 million, below the estimated $77.9 million.
The company's MACI net revenue slightly surpassed expectations, while the preliminary Epicel and NexoBrid revenues were lower than estimated. For the upcoming year, Vericel forecasts an adjusted Ebitda margin of 25% to 26% and a gross margin in the range of 73% to 74%.
In addition, Vericel has received positive analyst attention from Truist Securities and TD Cowen. Truist Securities upgraded its price target for Vericel shares to $67, citing the company's strong growth trajectory and potential for increased revenue and profitability. TD Cowen also raised its price target, maintaining a buy rating and expressing optimism about the company's growth prospects, particularly following the introduction of MACI Arthro.
Vericel reported a significant year-over-year revenue increase of 27% in its Q3 2024 earnings, achieving a record $58 million. This growth was primarily driven by a 19% rise in MACI revenue and a substantial 66% increase in total Burn Care revenue. The company also narrowed its net loss to $0.9 million and increased its adjusted EBITDA by 84% to $10 million.
Looking forward, Vericel anticipates strong demand for MACI and the impact of MACI Arthro on 2025 revenue. These are the recent developments in Vericel Corporation.
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