What Happened?
Shares of medical device company Artivion (NYSE: AORT) fell 11.2% in the morning session after the company reported weak fourth-quarter 2024 results, as both revenue and EPS missed Wall Street's expectations. While revenue did grow 4% year-on-year, it still fell short, partly due to the late-November cybersecurity incident that disrupted operations.
On the bright side, On-X mechanical heart valves and aortic stent grafts both saw solid 10% growth, but that was offset by an 8% decline in preservation services.
Despite the revenue shortfall, adjusted EBITDA rose 15%. However, net loss widened from a year ago, and non-GAAP EPS dropped significantly.
Looking ahead, the company guided for full-year 2025 revenue growth of 10% to 14%, slightly below expectations. However, Adjusted EBITDA is expected to grow between 18% and 28%, signaling continued margin improvement, but investors may remain cautious given recent operational disruptions.
Overall, this was a weaker quarter, with revenue and EPS missing expectations and guidance coming in slightly below forecasts.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Artivion? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Artivion’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. Moves this big are rare for Artivion and indicate this news significantly impacted the market’s perception of the business.
Artivion is down 12.2% since the beginning of the year, and at $24.66 per share, it is trading 22.2% below its 52-week high of $31.70 from February 2025. Investors who bought $1,000 worth of Artivion’s shares 5 years ago would now be looking at an investment worth $948.36.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
