Shares of Kensey Nash (NASDAQ:KNSY) closed 8% higher on Monday after the company reported stronger-than-expected fiscal fourth-quarter earnings, driven by much higher sales of general surgery supplies and improvements in its sports medicine business.
The medical device maker posted net income of $5.9 million, or 60 cents a share, compared with $4.7 million, or 41 cents a share, in the same quarter last year, and ahead of average analyst estimates of 52 cents, according to a Thomson Reuters poll.
Revenue for the Exton, Pennsylvania-based company was $21.9 million, compared with $20.5 million a year ago, and narrowly beating the Street’s view of $21.3 million.
Kensey Nash CEO Joe Kaufmann said the revenue increases were due primarily to an improvement in its sports medicine business, which more than offset a slowdown in its spine unit.
Sales of its general surgery products increased 74%, driven primarily by the initial shipment of products at the launch of the XCM Biologic Tissue Matrix by strategic partner Synthes.
Revenues were only slightly impeded by a 43% decline in endovascular sales.
Kensey Nash's record annual earnings per share were also boosted by key research milestones, including ECM product approvals in the U.S. and Europe, two ECM collaborative relationships and approval of a cartilage repair device.
Both earnings and sales for the full year either met or exceeded the company’s guidance.