BTIG has adjusted its price target for AtriCure (ATRC, Financial), reducing it from $58 to $52, while maintaining a Buy rating on the stock. The company's first-quarter performance showed notable success in U.S. sales of Appendage Management and Cryosphere products within the Pain Management sector. However, this positive outcome was largely balanced by significant challenges in the U.S. Minimally Invasive Ablation segment. The Convergent procedure has encountered competitive pressure due to increased adoption of pulsed field ablation techniques, according to an analyst's assessment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for AtriCure Inc (ATRC, Financial) is $52.25 with a high estimate of $60.00 and a low estimate of $45.00. The average target implies an upside of 50.79% from the current price of $34.65. More detailed estimate data can be found on the AtriCure Inc (ATRC) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, AtriCure Inc's (ATRC, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for AtriCure Inc (ATRC, Financial) in one year is $63.71, suggesting a upside of 83.87% from the current price of $34.65. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the AtriCure Inc (ATRC) Summary page.
ATRC Key Business Developments
Release Date: April 29, 2025
- Total Revenue: $124 million, 14% growth year-over-year.
- Adjusted EBITDA: $9 million, over 200% improvement from Q1 2024.
- Appendage Management Revenue Growth: 19% globally, with 23% growth in open AtriClip devices.
- Open Ablation Revenue: $33.3 million, 13.7% increase from Q1 2024.
- US Revenue: $101.1 million, 12.1% increase from Q1 2024.
- International Revenue: $22.5 million, 20.8% increase on a reported basis.
- Gross Margin: 74.9%, up 27 basis points from Q1 2024.
- Operating Expenses: $98.6 million, 6.9% increase from Q1 2024.
- Loss Per Share: $0.14, compared to $0.28 in Q1 2024.
- Cash and Investments: Approximately $100 million at the end of Q1 2025.
- Pain Management Revenue Growth: 39% in Q1 2025.
- Minimally Invasive Ablation Sales: $8.5 million, 31% decline from Q1 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- AtriCure Inc (ATRC, Financial) reported a 14% growth in total revenue for the first quarter, reaching $124 million, driven by strong performance in pain management and appendage management franchises.
- The company achieved a significant improvement in profitability, with adjusted EBITDA increasing by more than 200% from the first quarter of 2024, reaching $9 million.
- AtriCure Inc (ATRC) received 510(k) clearance for its minimally invasive AtriClip PRO-Mini device, which is 60% smaller than the next lowest-profile device, enhancing visualization and precise placement.
- The company's Cryo Nerve Block therapy for pain management saw a 39% growth in the first quarter, with the cryoSPHERE MAX and cryoSPHERE+ probes driving broader use and interest from new accounts.
- AtriCure Inc (ATRC) is expanding its market with the recent FDA 510(k) clearance of the cryoXT probe, designed for extremity amputations, offering an opioid-free solution for phantom and residual limb pain.
Negative Points
- Minimally invasive ablation sales declined by approximately 31% over the first quarter of 2024, due to pressure from the adoption of PFA catheters.
- The company continues to face downward pressure in the US market for Hybrid AF therapy, despite strong growth in Europe.
- Operating expenses increased by 6.9% from the first quarter of 2024, driven by continued enrollment in the LeAAPS clinical trial and increased headcount for product development.
- Despite strong performance, AtriCure Inc (ATRC) reported a loss per share of $0.14 in the first quarter of 2025, compared to a loss per share of $0.28 in the first quarter of 2024.
- The company anticipates continued pressure on its minimally invasive ablation sales due to the widespread adoption of PFA, impacting near-term growth.
