On Friday, Delcath Systems (NASDAQ:DCTH) shares received a reiteration of a Buy rating and a $22.00 price target from H.C. Wainwright, following the announcement of record sales in the third quarter of 2024.
Delcath reported preliminary revenues of approximately $11.2 million for the quarter, surpassing the consensus estimate of $9.5 million. This figure reflects a significant year-over-year growth of 44% when compared to the second quarter of 2024, during which the company generated $7.8 million in revenues.
The analyst from H.C. Wainwright expressed optimism about the company’s financial trajectory, citing the strong adoption of Delcath’s HEPZATO kit as a positive indicator. The robust sales performance in the third quarter is seen as a sign of growing market acceptance for the product.
In light of the recent preliminary revenue report, H.C. Wainwright has updated its financial model for Delcath. The firm now projects that Delcath will achieve revenues of $33.5 million for the full year of 2024. Despite the positive revenue forecast, the analyst anticipates that Delcath will post a net loss of $1.18 per share for the year.
The financial update and continued endorsement from H.C. Wainwright come as Delcath Systems aims to maintain its momentum in the market, leveraging the increased interest in its HEPZATO kit. The company’s recent performance suggests a strong commercial potential for its product offerings.
Delcath Systems’ share price reacted positively to the news, reflecting investor confidence in the company’s growth prospects and the analyst’s reaffirmed support. The market will continue to watch Delcath’s financial developments and product adoption rates closely.
In other recent news, Delcath Systems has reported strong third-quarter revenues of approximately $11.2 million, exceeding the consensus estimate of $9.5 million. This represents a significant 44% year-over-year growth from the second quarter of 2024. The robust sales performance has been attributed to the company’s HEPZATO kit.
On the heels of these positive earnings, Delcath Systems activated Tranche B warrants from a private investment event, potentially bringing in an additional $25 million in financing. The company plans to use these funds to further the commercial launch of HEPZATO KIT and invest in upcoming clinical trials.
Moreover, independent studies conducted by Moffitt Cancer Center and University Hospital of Leipzig, Germany, have shown promising results for Delcath’s HEPZATO KIT and CHEMOSAT Hepatic Delivery System in treating liver cancer. These findings suggest improved outcomes in disease control and progression-free survival for patients with metastatic uveal melanoma and primary or secondary liver tumors.
Lastly, Delcath Systems plans to increase active treatment sites from seven to 20 by the end of 2024 and aims to be cash flow positive by Q1 2025. These are recent developments that investors should monitor closely.
InvestingPro Insights
Delcath Systems’ recent performance aligns with several InvestingPro Tips, providing additional context to the company’s financial situation. According to InvestingPro, analysts anticipate sales growth in the current year, which is consistent with the record sales reported in Q3 2024 and H.C. Wainwright’s updated revenue projections. The company has also shown a significant return over the last week, with InvestingPro data indicating a 22.88% price total return in the past week.
The revenue growth highlighted in the article is further substantiated by InvestingPro data, which shows an impressive revenue growth of 350.44% over the last twelve months as of Q2 2024. This rapid growth trajectory supports the analyst’s optimism about the HEPZATO kit’s market adoption.
However, it is worth noting that despite the strong sales performance, InvestingPro Tips indicate that analysts do not anticipate the company will be profitable this year. This aligns with H.C. Wainwright’s projection of a net loss for 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Delcath Systems, providing a deeper understanding of the company’s financial health and market position.
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