KMTS

This article first appeared on GuruFocus. Total Revenue: $31 million, up 60% year over year; sequential increase off a strong Q4. Gross Margin: 56.5%, up over 10 points year over year and 175 basis points sequentially; 11th consecutive quarter of sequential expansion. GAAP Operating Expenses: $55.2 million vs. $37.7 million in prior year period; includes $1.4 million of non-recurring items. Non-GAAP Operating Expenses: $44.2 million (excluding non-recurring costs and stock-based compensation) vs. $30.3 million prior year. GAAP Net Loss: $44.1 million vs. $25.8 million prior year period. Adjusted EBITDA Loss: $24 million vs. $19.4 million prior year period. Cash Used from Operating Activities: $32.3 million in Q1; expected to decline sequentially through FY27. Cash, Cash Equivalents & Investments: $245 million as of July 31; total liquidity of approximately $320 million including unused committed availability under term loan. Financing: New $200 million term loan facility announced in July (non-dilutive). In-Network Mix: Low 80s of fittings, up from ~70% at IPO 18 months ago. FY27 Revenue Guidance: $141 million, representing 48% growth vs. FY26; raised from prior guidance of $137 million. Warning! GuruFocus has detected 5 Warning Signs with KMTS. Is KMTS fairly valued? Test your thesis with our free DCF calculator. Release Date: September 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue grew 60% year over year to $31 million, driven by WCD market expansion, competitive share gains, and higher in-network mix. Gross margin expanded to 56.5%, up over 10 points year over year and 175 basis points sequentially, marking the 11th consecutive quarter of sequential gross margin expansion. The company raised its gross margin target to mid-70% from the previous 70%, citing confidence in unit economics and volume leverage. Kestra Medical Technologies Ltd (NASDAQ:KMTS) increased its fiscal year 2027 revenue guidance to $141 million, representing 48% growth, up from the prior guidance of $137 million. The company strengthened its balance sheet with a new $200 million term loan facility, providing non-dilutive financing and significant financial flexibility. In-network patient mix improved to the low 80s from approximately 70% at the time of its IPO, enhancing revenue per patient and RCM efficiency. The WCD market grew approximately 14% in the 12 months ended July 2026, and Kestra Medical Technologies Ltd (NASDAQ:KMTS) believes it is still in the early innings of market expansion. A significant national payer expanded coverage to non-ischemic patients, signaling the impact of clinical evidence on payer policies. The company is investing in AI and automation to improve patient support, revenue cycle management, and sales rep productivity, which is expected to drive operating leverage. New sales reps are ramping faster than prior cohorts, and territory splits are driving deeper penetration and growth. GAAP operating expenses increased to $55.2 million from $37.7 million in the prior year period, primarily due to commercial expansion and accelerated R&D investments. GAAP net loss widened to $44.1 million from $25.8 million in the prior year period. Adjusted EBITDA loss increased to $24 million from $19.4 million in the prior year period. Cash used from operating activities was $32.3 million in the first quarter, with higher burn expected to decline sequentially throughout fiscal year 2027. The company expects GAAP operating expenses of $220 million for fiscal year 2027, representing 20% growth, which may pressure profitability in the near term. R&D spend increased significantly by 70% due to a late-stage R&D project, and while expected to return to historical levels, it remains a near-term expense headwind. The company does not provide detailed quarterly metrics on prescription volumes and revenue per FIT, limiting transparency for investors. There is a long tail of regional and local payers still not under contract, which could slow revenue growth and RCM improvements. The WCD market remains under-penetrated, with 6 out of 7 indicated patients not protected by a WCD in 2025, indicating a need for significant market development efforts. The company faces competition from an incumbent, and while gaining share, continued market expansion and share gains are not guaranteed. Q: Larry Biegelsen of Wells Fargo asked what gave management the confidence to raise full-year guidance by more than the quarterly beat, and how the cadence should be modeled for the rest of the year.A: CFO Vaseem Mahboob said the updated fiscal 2027 guidance of $141 million implies 48% growth, among the highest in small-cap med tech. Growth is driven by prescription volume, in-network mix, RCM improvements, and field team expansion, all tracking in the right direction. He added that reps hired last year should ramp in the second half, so the second half is expected to be faster than the first half. Q: Matthew O'Brien of Piper Sandler asked what is driving the raised gross margin outlook to the mid-70% range, roughly 400 to 500 basis points above the prior 70% target, and whether the timeframe has changed.A: CFO Vaseem Mahboob noted gross margin has now expanded for 11 consecutive quarters, rising over 10 points year over year in the quarter. Confidence in the mid-70% target comes from three factors: lower cost per FIT from cost improvement programs and volume-based supplier reductions, and higher revenue per FIT from an improving in-network mix. He said the company has good line of sight to mid-70% margins over the next few years. Q: Matthew O'Brien of Piper Sandler followed up on the guidance cadence, noting the implied second-half acceleration requires very large Q3 and Q4 numbers, and asked what gives confidence on rep productivity and territory splits.A: CEO Brian Webster said the company is seeing significant rep productivity gains as it splits larger territories and doubles down on them, and expects national leverage from the cohort of reps hired late in FY26 and early FY27 to show up in the second half. Ongoing marketing programs supporting the commercial team add further confidence. Q: Mike Polark of Wolfe Research asked how much of the 7% revenue beat came from volume versus revenue per FIT, to help build a higher-quality model.A: CFO Vaseem Mahboob declined to break out the components but said all KPIs driving the revenue model, including fill rate, bill rate, and in-period collections, improved. He reiterated that prescription performance has historically lagged revenue by a couple of points and that this relationship should hold for the year, with detailed disclosures promised at year-end. Q: Mike Polark of Wolfe Research asked about the large commercial payer that newly expanded coverage to non-ischemic patients, and where that payer sits in the coverage cycle.A: CEO Brian Webster said this payer was an outlier among large payers, most of which already cover the non-ischemic population. Some regional and smaller payers hold similar positions, and the company is optimistic about movement there. He called the decision a good signal that clinical evidence is influencing payer policies, reflected in the 14% market growth. Q: Marie Thibault of BTIG asked whether R&D spending will run higher than previously expected for the rest of the year, and about the timeline for AI-driven operating expense leverage.A: CEO Brian Webster said the elevated R&D spend was one-time in nature, made to accelerate and protect the schedule of a multi-year program nearing completion, and the R&D line should come back down in forward quarters. CFO Vaseem Mahboob added that GAAP OpEx for fiscal 2027 is expected at $220 million, with R&D returning to the historical 5% to 7% range in the second half, and that much of the AI-driven operating leverage will come in outer years, not this year. Q: Marie Thibault of BTIG asked whether the company could quantify how much revenue in the quarter came from the strong prescription volumes flagged last quarter that had not yet converted.A: CFO Vaseem Mahboob said the company has not historically provided that detail and is not doing so now. He reiterated that prescriptions have historically lagged revenue growth by a couple of points and that this relationship will continue for the year. Q: Rick Wise of Stifel asked about quarterly cadence through the year and whether anything unusual or one-time boosted the first quarter.A: CFO Vaseem Mahboob said the first half versus second half split is consistent with last year, with no difference in pattern. The 60% growth in Q1 was a favorable comparison against the prior-year period when the sales team was still ramping post-IPO, and the second-half acceleration is predicated on significant hiring over the last six months as those reps ramp up. Q: Rick Wise of Stifel asked which AI and automation initiatives will be most meaningful and when the impact will be visible.A: CEO Brian Webster said the cost per dollar of revenue from volume-based G&A functions is where the expense curve is starting to bend, with gradual benefits already visible in FY27 and acceleration expected in FY28 and FY29. He said the company is getting ahead of what would otherwise require human volume-based G&A investment as transaction volumes grow. Q: Stephanie Elghazi of Bank of America asked for updates on market expansion and market share, given the roughly 14% market growth and prior expectations of incremental share gains.A: CEO Brian Webster said the market is accelerating, with growth essentially doubling since the IPO, and he sees no reason for deceleration as both Kestra and its competitor invest in category growth. He estimated Kestra holds roughly 15% US market share, and with 60% growth versus a fraction of that for the incumbent, share capture should continue, with long-range plan assumptions on share proving conservative. Q: Stephanie Elghazi of Bank of America asked what is driving new reps to ramp faster than prior cohorts and how to frame growth from account expansion versus deeper penetration.A: CEO Brian Webster attributed faster ramps to investments in recruiting and more rigorous training for new territory managers. He said growth is a mix of going deeper in existing accounts, splitting territories, and expanding into new territories with no prior presence, with expansion territories contributing exciting growth, though he did not give an exact ratio. Q: An analyst on for Robbie Marcus of J.P. Morgan asked for an update on gross margin expansion, referencing prior commentary about roughly 700 basis points of improvement.A: CFO Vaseem Mahboob said the 700 basis point expansion for next year looks solid, and the company expects to deliver 70% For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue growth of 60% year-over-year was driven by a combination of competitive share gains, market expansion, and a higher mix of in-network patients. Management attributes the 11th consecutive quarter of gross margin expansion to attractive unit economics and volume leverage inherent in the rental business model. The 'integrated care model' is cited as a key differentiator, where therapeutic protection is paired with responsive support services to convert clinical insights into urgent patient care. Strategic territory management, including splitting high-volume 'platinum' territories and adding clinical specialists, is compounding growth by deepening penetration in existing accounts. Management highlighted that the WCD category remains significantly underpenetrated, with 6 out of 7 indicated patients not receiving protection in 2025. Payer dynamics are shifting favorably, evidenced by a major national payer expanding coverage to non-ischemic patients, who represent over 60% of the target population. Fiscal year 2027 revenue guidance was raised to $141 million from the prior guidance of $137 million, assuming accelerated rep productivity and seasonal strength in the second half of the year. Management increased the long-term gross margin target to the mid-70s, up from 70%, citing faster-than-expected progress in cost-improvement projects and in-network mix. A disciplined AI roadmap is being implemented to bend the operating expense curve by automating patient adherence outreach, prior authorizations, and sales rep documentation. The company expects to achieve profitability over the next few years by leveraging foundational technology investments to scale transaction volumes without proportional headcount increases. Late-stage R&D projects are expected to introduce 'first-in-category' capabilities to the ASSURE platform, intended to further differentiate the product from the incumbent. In-network patient mix improved to the low 80s, up from 70% at the time of IPO, which materially increases revenue per patient and administrative efficiency. A new $200 million term loan facility was secured to provide non-dilutive financing and liquidity for fleet expansion and commercial strategies. Q1 R&D spending was elevated due to a Biobeat milestone payment and professional fees for a key project, but management expects these costs to return to historical levels in the second half. The U.S. Department of Veterans Affairs (VA) represents a significant multi-year growth opportunity following Kestra's addition to the federal supply schedule six months ago. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed confidence based on all key revenue drivers—fill rate, bill rate, and collections—tracking in the right direction. The raise accounts for the expected productivity ramp of sales reps hired late in fiscal 2026 and early 2027. The higher target is supported by volume-based price reductions from suppliers and a steady increase in revenue per fit from better payer coverage. Management has good line of sight to achieving gross margins in the mid-70% range over the next few years, an increase from their prior target of 70%. AI tools are designed to provide reps with better data for account prioritization and to automate clinical documentation. The strategic goal is to increase 'fittings per rep,' which management identified as the primary metric for the company's path to profitability. Management declined to provide specific technical details but confirmed the project adds capabilities that do not currently exist in the WCD market. The company expects to provide a comprehensive update on this innovation in the next quarter.

Interested in Kestra Medical Technologies, Ltd.? Here are five stocks we like better. Kestra raised its fiscal 2027 revenue outlook to $141 million from $137 million after first-quarter revenue reached $31 million, up 60% year over year. Growth was driven by WCD market expansion, market-share gains, new accounts, improved payer mix and revenue-cycle improvements. Gross margin expanded to 56.5%, marking the 11th consecutive quarter of sequential improvement, and management lifted its longer-term target to the mid-70% range. However, the GAAP net loss widened to $44.1 million as the company increased commercial and late-stage R&D investments. Kestra reported roughly $320 million in total liquidity, including cash and unused term-loan capacity, while investing in AI-enabled operational tools, expanded payer coverage and new ASSURE platform capabilities. Kestra Medical Technologies (NASDAQ:KMTS) reported first-quarter fiscal 2027 revenue of $31 million, with President and Chief Executive Officer Brian Webster saying revenue rose 60% from a year earlier and advanced sequentially from the fourth quarter. The company raised its full-year revenue outlook to $141 million from a prior forecast of $137 million, representing expected growth of 48% over fiscal 2026. Management attributed growth to expansion of the wearable cardioverter defibrillator, or WCD, market, competitive share gains, deeper penetration of existing accounts, new account activations, a greater proportion of in-network patients and revenue-cycle-management improvements. → Why Bitcoin ETFs May Be Worth Another Look as Inflows Rebound “The KPIs are all tracking the right direction and give us a lot of confidence in increasing our guidance,” Chief Financial Officer Vaseem Mahboob said during the company’s earnings call. Kestra reported a gross margin of 56.5%, up from 45.7% in the prior-year period and 175 basis points sequentially. Webster said the first quarter marked the company’s 11th consecutive quarter of sequential gross-margin expansion. → Nasdaq’s $100 Million Kraken Bet Prepares It for a Market That Never Closes Mahboob said margin improvement reflected higher revenue per fitting as in-network patient mix increased, along with lower cost per fitting from volume leverage, supplier reductions and cost-improvement programs. Kestra now expects to reach gross margins in the mid-70% range over the next two to three years, increasing its previous target of 70%. Management also said it expects steady sequential gross-margin gains in future quarters as the company’s rental model benefits from additional fittings. Mahboob said Kestra expects to achieve a 70% gross margin for fiscal 2029, implying a margin above that level during the second half of the year. → 3 Small-Cap Biotechs With Binary Catalysts on the Calendar Despite the higher gross margin, Kestra’s GAAP net loss widened to $44.1 million from $25.8 million a year earlier. Adjusted EBITDA loss was $24 million, compared with a $19.4 million loss in the prior-year period. GAAP operating expenses increased to $55.2 million from $37.7 million. The total included $1.4 million of nonrecurring costs associated with a Biobeat milestone payment and one-time professional fees related to a late-stage research and development project. Excluding nonrecurring costs and stock-based compensation, operating expenses were $44.2 million, compared with $30.3 million a year earlier. Mahboob said the increase primarily reflected commercial expansion and accelerated investments in late-stage R&D. He said the company expects GAAP operating expenses of approximately $220 million for fiscal 2027, including continued commercial investment, while R&D spending is expected to return to a historical range of roughly 5% to 7% in the second half of the year. Webster said the company’s sales organization is gaining share in competitive accounts while expanding use of WCD therapy among prescribers. He said newer sales representatives are ramping faster than prior cohorts, while more established representatives continue to deliver same-store growth. The company has been splitting high-volume territories and adding clinical account specialists in certain markets. Webster said the strategy is intended to deepen relationships with prescribers and increase territory productivity. Kestra expects representatives hired late in fiscal 2026 and early in fiscal 2027 to contribute more meaningfully during the second half of the current fiscal year. Management estimated that the WCD market grew approximately 14% on a dollar basis in the 12 months ended July 2026. Webster said Kestra held roughly 15% of the U.S. market during the most recent quarter and believes it is ahead of schedule on its longer-term market-share plans. Kestra also continues to pursue expanded payer coverage. The company said the proportion of fittings involving patients with in-network benefits has risen to the low-80% range, from approximately 70% at the time of its initial public offering 18 months earlier. Management expects the percentage to rise further during fiscal 2027 as new payer contracts are signed in targeted markets. Webster noted that a large national payer recently expanded coverage to non-ischemic patients receiving guideline-directed medical therapy. He said the payer had previously been an outlier among large insurers, and that more than 60% of the typical WCD patient population is non-ischemic. The company said it is investing in artificial intelligence and automation across patient support, reimbursement and collections processes, and sales operations. Webster said the initial uses include automated patient outreach, intake and prior-authorization workflows, and tools to help sales representatives prioritize accounts and prepare clinical documentation. Management expects the initiatives to gradually reduce the cost per dollar of revenue in volume-based general and administrative functions during fiscal 2027, with more substantial benefits anticipated in fiscal 2028 and fiscal 2029. Webster said the goal is to improve sales-representative productivity without requiring proportional headcount growth. Kestra is also progressing with its Biobeat Technologies partnership to integrate noninvasive blood-pressure monitoring into the ASSURE platform. Webster said the company is completing a late-stage R&D project intended to add capabilities not currently available in WCDs, with more details expected next quarter. Cash used in operating activities was $32.3 million during the first quarter, which Mahboob said reflected annual bonus payments and the timing of supplier payments. He said cash burn is expected to decline sequentially through fiscal 2027. As of July 31, Kestra had $245 million in cash, cash equivalents and investments. Including unused committed availability under its new $200 million term-loan facility, the company reported approximately $320 million in liquidity. Kestra Medical Technologies, Inc is a medical device company focused on developing and commercializing technologies for patients at risk of sudden cardiac arrest. The company's primary product is the ASSURE wearable cardioverter defibrillator, a wearable system designed to continuously monitor a patient's heart rhythm and deliver an electrical shock when a life-threatening arrhythmia is detected. The ASSURE system is intended to provide temporary protection for patients who may be at elevated risk of sudden cardiac death but are not yet candidates for, or are awaiting, an implantable cardioverter-defibrillator. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kestra Medical Technologies Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

KIRKLAND, Wash., Sept. 14, 2026 (GLOBE NEWSWIRE) -- Kestra Medical Technologies, Ltd. (Nasdaq: KMTS), a leading wearable medical device and digital healthcare company, today reported financial results for the first quarter of fiscal year 2027, which ended July 31, 2026. Financial Highlights Generated revenue of $31.0 million in F1Q27, an increase of 60% compared to the prior year period. Expanded gross margin to 56.5% in F1Q27 compared to 45.7% in the prior year period. Increased FY27 revenue guidance to $141 million, representing growth of 48% compared to FY26. “Kestra delivered another strong quarter of financial performance, generating revenue growth of 60% while expanding gross margin to over 56%,” said Brian Webster, President and CEO. “We remain confident that our focus on innovation and commercial expansion positions Kestra to generate durable, top-tier growth for years to come. Our team is executing on its commitments to prescribers and their patients and we believe this will continue to drive market expansion and advance Kestra on its path to market leadership.” First Quarter Fiscal 2027 Financial Results Total revenue was $31.0 million, an increase of 60% compared to the prior year period. Gross profit was $17.5 million compared to $8.9 million in the prior year period. GAAP operating expenses were $55.2 million compared to $37.7 million in the prior year period. GAAP net loss was $44.1 million compared to GAAP net loss of $25.8 million in the prior year period. Cash and cash equivalents, and investments totaled $244.7 million as of July 31, 2026. *Adjusted operating expenses and adjusted EBITDA are non-GAAP financial measures. See “Use of Non-GAAP Financial Measures” below for additional information. Reconciliations of adjusted operating expenses and adjusted EBITDA to the most directly comparable GAAP measure are included in this press release. Fiscal Year 2027 Revenue GuidanceKestra is increasing its FY27 revenue guidance to $141 million, representing growth of 48% compared to FY26. This compares to prior FY27 revenue guidance of $137 million. Webcast and Conference CallKestra will host a conference call today at 4:30 p.m. Eastern Time to discuss financial results. A live and archived webcast of the event will be available in the “Events” section of the investor relations website. About KestraKestra Medical Technologies, Ltd. is a leading wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. For more information, visit www.kestramedical.com. Use of Non-GAAP Financial MeasuresThis press release contains certain financial information that is not presented in conformity with U.S. generally accepted accounting principles (“GAAP”), including adjusted operating expense and adjusted EBITDA. The non-GAAP financial measures are provided as supplemental information to Kestra’s financial measures presented in this press release that are calculated and presented in accordance with GAAP. Adjusted operating expense is calculated as operating expenses, as adjusted to exclude share-based compensation expense and non-recurring expenses. Adjusted EBITDA is calculated as net income (loss), as adjusted to exclude other income/expense (including interest), income tax expense (benefit), depreciation and amortization expense, share-based compensation expense, and non-recurring expenses. Both metrics are presented because management believes they will allow investors to view Kestra’s performance in a manner similar to the method used by management to evaluate Kestra’s performance for both strategic and annual operating planning. Management believes that in order to properly understand short-term and long-term financial trends, it is helpful for investors to understand the impact of the items excluded from the calculation of adjusted operating expenses and adjusted EBITDA, in addition to considering Kestra’s GAAP financial measures. The excluded items vary in frequency and/or impact on our results of operations and management believes that the excluded items are not reflective of our ongoing core business operations and financial condition. Excluding such items allows investors and analysts to compare our operating performance to other companies in our industry and to compare our period-over-period results. The non-GAAP financial measures used by Kestra may not be the same or calculated in the same manner as those used and calculated by other companies. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Kestra’s financial results prepared and reported in accordance with GAAP. We urge investors to review the reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate our business. A reconciliation of adjusted operating expenses and adjusted EBITDA reported in this press release to the most comparable respective GAAP measure for the respective periods appears in the tables captioned “Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses” and “Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA” later in this release. Within the accompanying financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Forward-Looking StatementsExcept where otherwise noted, the information contained in this press release is as of September 14, 2026. Statements in this press release and on the related teleconference that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements. Except as required by law, Kestra undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about, among other topics, our anticipated operating and financial performance, including financial guidance and projections; business plans, strategy, goals and prospects, potential growth, and expectations for our products. Given their forward-looking nature, these statements involve substantial risks, uncertainties and potentially inaccurate assumptions, and we cannot ensure that any outcome expressed in these forward-looking statements will be realized in whole or in part. You can identify these statements by the fact that they use future dates or use words such as “will,” “may,” “could,” “likely,” “ongoing,” “continue,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “advance,” “remain,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words and terms of similar meaning. Kestra’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: risks related to our limited operating history and history of net losses; our ability to successfully achieve substantial market adoption of our products; competitive pressures; our ability to adapt our manufacturing and production capacities to evolving patterns of demand, governmental actions and customer trends; product defects or complaints and related liability; our ability to obtain and maintain adequate coverage and reimbursement levels for our products; our ability to comply with changing laws and regulatory requirements and resulting costs; our dependence on a limited number of suppliers; risks and uncertainties related to market conditions; and other risks and uncertainties, including those described under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended April 30, 2026 and other filings filed or to be filed with the U.S. Securities and Exchange Commission (“SEC”). These filings, when made, are available on the Investor Relations section of our website at https://investors.kestramedical.com/ and on the SEC’s website at https://sec.gov/. CONTACT: Investor Relations Neil Bhalodkar [email protected]

Wall Street expects a year-over-year decline in earnings on higher revenues when Kestra Medical Technologies, Ltd. (KMTS) reports results for the quarter ended July 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on September 14, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of -32.6%. Revenues are expected to be $29.04 million, up 49.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.28% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Kestra Medical Technologies, Ltd., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.97%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Kestra Medical Technologies, Ltd. will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Kestra Medical Technologies, Ltd. would post a loss of$0.59 per share when it actually produced a loss of -$0.67, delivering a surprise of -13.56%. Over the last four quarters, the company has beaten consensus EPS estimates just once. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Kestra Medical Technologies, Ltd. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kestra Medical Technologies, Ltd. (KMTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Phibro Animal Health (PAHC) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +18.06%. A quarter ago, it was expected that this maker of animal health products and nutritional supplements would post earnings of $0.72 per share when it actually produced earnings of $0.76, delivering a surprise of +5.56%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Phibro, which belongs to the Zacks Medical - Products industry, posted revenues of $396.7 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.35%. This compares to year-ago revenues of $378.7 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Phibro shares have lost about 3.8% since the beginning of the year versus the S&P 500's gain of 12.2%. While Phibro has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Phibro was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.79 on $375.96 million in revenues for the coming quarter and $3.33 on $1.54 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Kestra Medical Technologies, Ltd. (KMTS), has yet to report results for the quarter ended July 2026. This company is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of -32.6%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Kestra Medical Technologies, Ltd.'s revenues are expected to be $29.04 million, up 49.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report Kestra Medical Technologies, Ltd. (KMTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 66% revenue growth in Q4, driven by a 63% increase in prescriptions and successful activation of new accounts. Expanded gross margin for the 10th consecutive quarter to 54.8%, reflecting the strong unit economics of the rental model and improved revenue per fit. Reduced sales rep ramp-up time through enhanced commercial training, allowing new territory managers to reach productivity milestones faster. Expanded the commercial team to approximately 130 sales territories, which helped drive a 55% increase in new prescribers and a 65% increase in ordering facilities for the ASSURE system during fiscal 2026. Observed low- to mid-teens growth in the overall WCD market, suggesting the category is expanding beyond the legacy incumbent's reach. Implemented standardized care pathways within large cardiovascular organizations, embedding the ASSURE system into hospital discharge and outpatient workflows. Projected fiscal 2027 revenue of $137 million, representing 44% growth based on deeper account penetration and regional expansion. Anticipate adding approximately 40 new sales territories in FY 2027 to reach approximately 170 total, focusing on high-volume geographies with strong payer coverage. Targeting 70%+ gross margins over the next few years, supported by a projected 7 percentage point increase in FY 2027 through volume leverage and cost improvements. Plans to publish multiple clinical abstracts and manuscripts over the next 12 months to influence medical guidelines and support broader WCD adoption. Expects to see accelerating revenue growth in the second half of FY 2027 as the territory managers added in FY 2026—bringing the total to 130—complete their productivity ramps. Secured a new $200 million term loan facility with Pharmakon, reducing the cost of capital by 24% compared to the previous debt structure. Maintained a strong liquidity position of approximately $357 million to support commercial investment and potential opportunistic M&A. Released an enhanced detection algorithm in April designed to further reduce false alarm rates and differentiate the product from competitors. Reported a year-over-year decline in operating cash burn, signaling a shift toward improved operating leverage as the business scales. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the guide is supported by starting the year with 130 territories versus 80 in the prior year and maintaining an in-network mix in the low-to-mid 80% range. The guidance was characterized as a 'rational' starting point that accounts for the absorption of a large number of new sales reps. Management views the incumbent's recent product launch as incremental rather than transformative, noting the competitor's fleet replacement cycle will take 3 to 5 years. Regarding a competitor's warning letter, management clarified it appeared directed at AED and ventilator divisions but noted they are monitoring for any 'contagion' in the WCD space. The financing was described as opportunistic to lower capital costs and provide flexibility for 'tuck-in' deals that could leverage their direct cardiology sales force. Management confirmed there is no immediate transaction, but they are interested in technologies that add clinical value to their existing channel. Current 130 territories provide roughly 70% geographic coverage in the U.S., but management plans to split territories in high-volume areas like Chicago to improve penetration. The company expects to reach 'full coverage' of the WCD prescribing universe within the next two years.

This article first appeared on GuruFocus. Revenue: $28.6 million for Q4, a 66% increase year-over-year; $95 million for FY26, a 59% increase compared to FY25. Gross Margin: 54.8% for Q4, expanded by over 10 points year-over-year and 200 basis points sequentially; 51.4% for FY26, increased by approximately 11 points compared to FY25. Operating Expenses: $55 million GAAP operating expenses for Q4; $44.7 million excluding nonrecurring costs and stock-based compensation. Net Loss: $38.8 million GAAP net loss for Q4, compared to $51.1 million in the prior-year period. Adjusted EBITDA Loss: $26.7 million for Q4, compared to $20.3 million in the prior-year period. Cash and Investments: $262 million as of April 30. Operating Cash Burn: $18.7 million net cash used in operating activities for Q4, reduced from $24.1 million in the prior-year period. Sales Territories: Approximately 130 active sales territories at the end of FY26, up from about 80 at the end of FY25. FY27 Revenue Guidance: Expected revenue of $137 million, a 44% increase compared to FY26. Warning! GuruFocus has detected 4 Warning Sign with KMTS. Is KMTS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kestra Medical Technologies Ltd (NASDAQ:KMTS) reported a 66% increase in revenue for the fourth quarter, reaching $28.6 million, driven by a 63% year-over-year increase in prescriptions. The company achieved a gross margin of 54.8%, marking the tenth consecutive quarter of sequential gross margin expansion. KMTS expanded its sales territories from 80 to 130, enhancing its market penetration and sales force productivity. The ASSURE system's clinical evidence and innovation, including a new detection algorithm, have strengthened its competitive position in the wearable cardioverter defibrillator (WCD) market. KMTS secured a $200 million term loan facility, providing financial flexibility to invest in growth opportunities and potential acquisitions. Despite strong revenue growth, KMTS reported a GAAP net loss of $38.8 million for the fourth quarter. Operating expenses increased to $55 million, primarily due to investments in the commercial organization and revenue cycle management capabilities. The company's adjusted EBITDA loss widened to $26.7 million in the fourth quarter compared to the prior-year period. KMTS's operating cash burn, although reduced, remains significant at $18.7 million for the fourth quarter. The company faces challenges in fully penetrating existing territories, with some sales reps managing an unmanageable number of accounts. Q: Can you provide more details on the assumptions behind the fiscal '27 guidance, particularly regarding the $137 million revenue target? A: Our revenue growth is driven by prescription volume growth, in-network mix, revenue cycle management improvements, and field team expansion. We expect 44% growth in fiscal year 2027, supported by deeper penetration in existing accounts and market expansion. Our sales territories have increased to 130, up from 80 at the start of fiscal year 2026, which gives us confidence in our guidance. - Vaseem Mahboob, CFO Q: What are your thoughts on guideline recommendations and stronger support from societies following the Heart Rhythm publication? A: The recent paper is a positive step towards guideline recommendations. We will publish our ACE-PAS manuscript soon and continue working with clinical advisers to engage in discussions about timelines. The paper highlights the potential of WCD therapy for both post-MI and heart failure patients, which is promising for future guideline development. - Brian Webster, CEO Q: How should we think about the share gains you've been achieving, and can this be accelerated in '27? A: The share gain in 2026 doesn't fully reflect the benefits of our hiring efforts. We expect more share gain as new reps come up the curve, especially in territories where we were previously absent. Additionally, market growth is exciting, and we will continue to develop the WCD category. - Brian Webster, CEO Q: Why did you decide to raise more money through the recent financing, and does this indicate a more acquisitive approach? A: The refinancing aimed to reduce our cost of capital, achieving a 24% reduction. We sought financial flexibility to invest in our business and explore potential M&A opportunities. The M&A tranche is prospective, and while there's nothing immediate, we are interested in leveraging our sales force for new technologies. - Vaseem Mahboob, CFO and Brian Webster, CEO Q: Can you elaborate on your sales territory goals and the potential for further expansion? A: We plan to add about 40 more reps in fiscal year 2027, focusing on both new territories and deeper penetration in existing ones. We aim to cover approximately 70% of the geographic market with our current reps, but full coverage will require more reps to manage account loads effectively. - Brian Webster, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.