Can TMCI sustain its EPS momentum into Q1 2025?
4/12/2025 06:14pm
**Treace Medical Concepts Inc. (TMCI) is poised to sustain its EPS momentum into Q1 2025**, based on several key indicators:
1. **Consistent Revenue Growth**: TMCI has demonstrated a robust revenue growth trajectory, with a 10.4% increase in revenue reported for Q4 2024, reaching $68.7 million. This growth momentum is a positive signal, suggesting that the company's products and market initiatives are gaining traction.
2. **Financial Resilience**: Despite a slight decrease in gross margin from 81.6% to 80.7%, the company improved its adjusted EBITDA significantly, achieving a 322% year-over-year increase. This improvement in EBITDA indicates enhanced operational efficiency and profitability, which are crucial for sustaining EPS momentum.
3. **Positive Analyst Sentiments**: Despite a slight revision in earnings expectations downward for the upcoming period, the overall analyst sentiment remains stable with an average consensus recommendation of "hold" and a median 12-month price target of $9.50. This suggests that analysts do not foresee any significant downturns in EPS for the near term.
4. **Institutional Confidence**: Institutional investors have shown confidence in TMCI, with several notable investments, including Morgan Stanley and JPMorgan Chase & Co., increasing their stakes in the company. This influx of capital can provide a stabilizing effect on the company's financials and support its EPS momentum.
5. **Company Outlook**: Treace Medical has provided a positive outlook for 2025, projecting full-year revenue in the range of $224 million. This guidance implies a continuation of the company's growth trajectory, which should support its EPS momentum.
In conclusion, while there may be some challenges and revisions in earnings expectations, the overall indicators of revenue growth, financial resilience, analyst sentiment, institutional confidence, and company outlook suggest that TMCI is likely to sustain its EPS momentum into Q1 2025.