Alphatec (ATEC) Moves 12.8% Higher: Will This Strength Last?
Alphatec (ATEC) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price...
Alphatec ATEC shares soared 12.8% in the last trading session to close at $12.75. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.1% loss over the past four weeks.
Alphatec recorded a solid price appreciation driven by its encouraging preliminary fourth quarter and full-year 2021 financial results, coupled with a strong 2022 outlook. Per the pre-announcement, the company reported fourth quarter revenues in the range of $73.2-$74.0 million and full-year 2021 revenues in the band of $242.5-$243.3 million both ahead of the respective Zacks Consensus Estimates of $66.59 million and $236.16 million. The company’s projected full-year 2022 total revenue of $305 million (up 26% year over year) raises investors’ optimism. The Zacks Consensus Estimate for Alphatec’s 2022 revenues is pegged at $292.12 million, below the company’s projection.
This medical equipment and supplies holding company is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of -36.4%. Revenues are expected to be $66.59 million, up 51.5% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Alphatec, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ATEC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Alphatec Holdings, Inc. (ATEC): Free Stock Analysis Report
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