Surgalign Holdings Inc (NASDAQ:SRGA) Stock Falls 8% On Disappointing Q3 Earnings
Worldwide medical technology firm Surgalign Holdings Inc (NASDAQ:SRGA) was in the news on Tuesday after the company announced its financial results for the third fiscal quarter of 2021.
Market Stats
On Tuesday, SRGA stock fell 2% to $1.01 with more than 3.69 million shares, compared to its average volume of 3.82 million shares. The stock has moved within a range of $0.9900 – 1.0500 after opening the trade at $1.02.
Earnings Review
The market has not reacted with any optimism to the financial results and in fact, the stock is down by as much as 8% in premarket trading this morning. In this context, it might be a good idea for investors to take a closer look at some of the highlights from the third quarter performance. Surgalign managed to bring in revenues of as much as $20.5 million from its global spine operations.
However, at the same time, it should be noted that it was considerably lower than the revenues of as much as $27.9 million in the same segment in the prior year period. On the other hand, the net losses for the quarter came in at $8.3 million and that worked out to losses of $0.06 a share.
At the end of the third quarter on September 30, 2021, the company had cash and cash equivalents to the tune of $68.4 million. In addition to that, Surgalign also appointed Sheryl Conley as the Chair of its Board in a non-executive capacity.
Key Quote
“We are very proud of the work we have done to transform Surgalign into a leader in the digital surgery space with the development of the HOLO AI Digital Platform. We believe this platform is truly revolutionary, and by changing the way surgery is performed through the delivery of intelligent solutions to surgeons, the platform will help drive improved patient outcomes,” said Terry Rich, President and Chief Executive Officer of Surgalign Holdings. “Like others in our industry, third quarter performance within our legacy business was heavily impacted by the COVID-19 Delta variant, including associated pressures on elective procedures, as well as systemic hospital staffing shortages.”
Traders Corner
SRGA stock is trading below the 50-Day and 200-Day Moving averages of $1.18 and $1.62 respectively. Moreover, the stock is trading below the 20-Day moving average of $1.05. The stock is up 10% in the past 3-month.