Sientra misses earnings expectations but shares still gain after Q3 report
Goleta-based Sientra missed analysts’ expectations when it released financial results for the third quarter of 2021 on Nov. 10, posting a net loss when accounting for certain one-time factors such as the relief of its paycheck protection program loan.
Sientra, a plastic surgery device company specializing in breast implants, had net income of $28.4 million in the third quarter of 2021, up from a net loss of $5.8 million in the same quarter last year, when its business was slowed by the pandemic.
But, $32.2 million in the most recent quarter was due to a positive change in fair value of derivative liability of $25.5 million following the amendment of the company’s convertible note, as well as relief of its $6.7 million PPP loan, Sientra said in a news release.
When that is factored in, Sientra actually lost $8.3 million on a non-GAAP basis, or 66 cents per share, compared to a loss of $7.2 million in the same quarter a year ago, missing Zacks’ Consensus Estimate’s projection of a loss of 26 cents per share.
Shares of Sientra closed at $5.75 on Nov. 11, up 8.5% from the previous day.
Sientra did see revenue growth during the third quarter, however, as the company generated $19.6 million, up 28% rise from the same quarter a year ago.
Sientra also raised its revenue guidance for full year 2021, to the range of $76 million to $78 million, a 38% or 42% growth, exclusive of discontinued operations, the company said.
Gross profit was $10.6 million, or 54% of sales, better than a year ago when the company had gross profit of $8.2 million, but it was offset by Sientra moving its distribution center from Santa Barbara to Franklin, Wisconsin.
Operating losses also increased from $9.5 million in the third quarter last year to $11.7 million in the third quarter of 2021.
Sientra closed the quarter with $66.1 million in cash and cash equivalents.