Friday, October 31, 2014

Novadaq revenue beats analysts’ expectations

August 3, 2012 by · Leave a Comment 

Second quarter revenue of $5.4-million for Novadaq Technologies (NASDAQ:NVDQ; TSX:NDQ) beat consensus, prompting several analysts to say they are encouraged that the demand for Novadaq’s SPY imaging remains strong.

Spencer Nam of ThinkEquity writes Novadaq has the potential to exceed the Street’s expectations over the next 12-to-24 months, implying that the company could reach the $100-million revenue plateau within the next three-to-five years.

“At that rate, our $11 price target (implied market cap of $450-million) does not seem aggressive, in our view,” he said.

Doug Loe of Byron Research notes that he is “encouraged by SPY adoption metrics like systems shipped (130 SPY Elite and/or Firefly units to hospital clients or partners, exceeding our quarterly forecast of 90-to-110 per quarter) and consumable kits (4,100 in the quarter).”

Based on SPY Elite and FIREFLY procedures kits shipped during the second quarter, Mr. Loe said each SPY imaging modality is currently being used on average for about six procedures per quarter (new shipments undoubtedly less active than mature installations), a “utilization rate that has abundant room to grow and thus drive revenue on procedural volume growth alone.”

Mr. Loe’s price target is $12. The stock is changing hands at $8.20 Friday morning.

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