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An Overview of TransEnterix’s Q2 2018 Results

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Revenue trends

TransEnterix (TRXC) reported its second-quarter earnings on Tuesday, August 7, before the market opened. TransEnterix generated second-quarter revenues of $6.4 million compared to $1.6 million in the second quarter of 2017. 

In the second quarter, TransEnterix’s Senhance Surgical Robotic System’s sales generated $4.7 million in revenues. TransEnterix’s Instrument and Accessories segment posted revenues of $1.5 million, and its Services segment generated $200,000 in revenues.

TransEnterix reported the sale of four Senhance Systems in the second quarter. In the second quarter, the FDA granted clearance for the expansion of indications for the Senhance system. The company filed an FDA 510(k) for the approval of certain Senhance System instruments. 

To learn more about TransEnterix’s Senhance System and how it could boost its revenue growth, please refer to Senhance Expected to Boost TransEnterix’s Revenue beyond 2018.

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Earnings trends

In the second quarter, TransEnterix (TRXC) reported a net loss of $34.2 million compared to a net loss of $14.7 million in the second quarter of 2017. In the first half of the year, TransEnterix reported a net loss of $35.1 million compared to a net loss of $30.1 million in the first half of 2017.

In the second quarter, TransEnterix reported diluted EPS of -$0.17 compared to EPS of -$0.11 in the second quarter of 2017.

Expense trends

TransEnterix’s second-quarter cost of revenues reached $3.7 million, compared to $972,000 in the second quarter of 2017.

In the second quarter, TransEnterix reported R&D (research and development), S&M (sales and marketing), and G&A (general and administrative) expenses of $5.3 million, $6.0 million, and $3.6 million, respectively, compared to $5.1 million, $3.7 million, and $2.7 million in the second quarter of 2017.

In the first half, TransEnterix reported R&D, S&M, and G&A expenses of $10.5 million, $12.0 million, and $6.3 million, respectively, compared to $11.9 million, $7.4 million, and $5.8 million in the first half of 2017.

Among TransEnterix’s peers in the medical devices market, Zimmer Biomet Holdings (ZBH) and Baxter International (BAX) reported revenues of $2.0 billion and $2.8 billion, respectively, in the second quarter.

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Stock performance

On August 7, TransEnterix traded at a stock price of $4.70, which represents an ~12.71% decline from its closing price of $5.39 on August 6. Its August 6 closing price was ~11.0% below its 52-week high of $6.04 on June 27. TransEnterix hit its 52-week low of $0.67 on August 10, 2017.

Analysts’ recommendations

Of the five analysts tracking TransEnterix stock in August, one analyst recommended a “strong buy,” one recommended a “buy,” and three analysts recommended a “hold.”

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