Can Artivion's Strong Vital Signs Lead To Further Stock Gains?

(RTTNews) - Artivion Inc. (AORT), a cardiac and vascular surgery company specializing in aortic disease, is experiencing a banner year, with shares surging nearly 64% year-to-date to trade around $25.

The company manufactures, processes, and distributes medical devices and implantable human tissues that are used in cardiac and vascular surgical procedures for patients with aortic disease. It has four major product families: aortic stent grafts, surgical sealants, On-X mechanical heart valves, and related surgical products, and implantable cardiac and vascular human tissues.

Revenue is reported under two segments - Medical Devices and Preservation Services, with the Medical Devices segment accounting for a major portion of the company's revenue.

The Medical Devices segment includes revenues from sales of aortic stent grafts, surgical sealants, On-X products, and other product revenues. The Preservation Services segment includes services revenues from the preservation of cardiac and vascular implantable human tissues.

After a pandemic-induced setback in 2020, when total revenue dipped to $253 million from $276 million in 2019, the company has staged a robust recovery - not only regaining its pre-pandemic performance but surpassing it significantly. In 2021, total revenue climbed to $298.8 million, followed by a steady increase to $313.8 million in 2022, and by 2023, it reached $354 million.

The company reported strong financial results for the second quarter ended June 30, 2024, recently.

Revenue was $98.0 million in the second quarter of 2024, compared to $89.3 million in the second quarter of 2023, an increase of 10%.

Net loss for the second quarter of 2024 narrowed to $2.1 million or $0.05 per share from $3.4 million or $0.08 per share in the year-ago quarter. On a non-GAAP basis, the company reported a net income of $2.9 million, or $0.07 per share, for the second quarter of 2024, an improvement from the net income of $2.3 million, or $0.06 per share, in the second quarter of 2023.

Building on its strong quarterly performance, the company projects total revenue for 2024 to range between $388 million and $396 million, indicating an anticipated growth of nearly 10% to 12% compared to 2023.

The company ended June 30, 2024, with cash of $55 million.

Formerly known as CryoLife Inc., the company changed its name to Artivion Inc. and ticker to "AORT" from "CRY", effective January 24, 2022, as part of a corporate rebranding.

AORT has traded in a range of $12.16 to $29.24 in the last 1 year. The stock closed yesterday's trading at $25.50, up 0.87%.