AtriCure (NASDAQ:ATRC) Posts Quarterly Earnings Results, Beats Expectations By $0.23 EPS

AtriCure (NASDAQ:ATRC) issued its quarterly earnings data on Tuesday. The medical device company reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of ($0.06) by $0.23, FiscalAI reports. AtriCure had a net margin of 2.52% and a return on equity of 4.08%. The firm had revenue of $154.45 million for the quarter, compared to analysts’ expectations of $151.05 million.

Here are the key takeaways from AtriCure’s conference call:

• Strong third-quarter results: Revenue rose 15% year over year to $154.5 million, while net income reached $4.1 million and adjusted EBITDA increased 51% to $26.8 million.
• Growth was led by U.S. open ablation, appendage management, and pain management, including continued adoption of the EnCompass Clamp, AtriClip FLEX-Mini/PRO-Mini, and cryoSPHERE MAX. CryoXT revenue approached $1.5 million and surpassed 1,000 devices sold cumulatively.
• AtriCure remains on track to complete BoxX-NoAF enrollment before year-end, with initial clinical data expected in spring 2027; management views BoxX-NoAF and the ongoing LeAAPS study as significant future cardiac-surgery growth catalysts.
• Management cited continued headwinds in the U.S. hybrid ablation business and international markets, particularly European funding and reimbursement challenges; minimally invasive ablation sales declined during the quarter. The company also expects some gross-margin pressure from a full quarter of costs at its new manufacturing facility.
• Full-year 2026 revenue guidance was raised to approximately $606 million-$610 million, adjusted EBITDA guidance increased to $91 million-$94 million, and management said it remains confident in sustained profitable growth heading into 2027.

AtriCure Trading Down 2.8%

Shares of NASDAQ:ATRC traded down $1.82 during trading on Thursday, reaching $63.71. The stock had a trading volume of 98,701 shares, compared to its average volume of 870,946. AtriCure has a fifty-two week low of $25.36 and a fifty-two week high of $66.02. The business has a fifty day moving average price of $56.36 and a 200-day moving average price of $38.52. The stock has a market cap of $3.24 billion, a P/E ratio of 213.94 and a beta of 1.23. The company has a quick ratio of 3.19, a current ratio of 4.22 and a debt-to-equity ratio of 0.14.

Wall Street Analyst Weigh In

ATRC has been the topic of several recent research reports. Freedom Capital downgraded shares of AtriCure from a “strong-buy” rating to a “hold” rating in a report on Friday, October 2nd. Citizens Jmp raised their price objective on shares of AtriCure from $52.00 to $68.00 and gave the stock a “market outperform” rating in a research note on Wednesday, October 21st. Weiss Ratings raised shares of AtriCure from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. BTIG Research lifted their price objective on AtriCure from $63.00 to $70.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, Raymond James Financial set a $52.00 target price on AtriCure in a research note on Tuesday, July 21st. Six equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $61.80.

Insider Buying and Selling at AtriCure

In other news, insider Salvatore Privitera sold 7,763 shares of AtriCure stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $52.50, for a total value of $407,557.50. Following the completion of the sale, the insider owned 150,921 shares of the company’s stock, valued at $7,923,352.50. The trade was a 4.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Regina E. Groves sold 5,313 shares of the company’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $54.22, for a total value of $288,070.86. Following the completion of the transaction, the director owned 34,546 shares of the company’s stock, valued at $1,873,084.12. The trade was a 13.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 30,622 shares of company stock worth $1,626,003. Insiders own 4.00% of the company’s stock.

Key Stories Impacting AtriCure

Here are the key news stories impacting AtriCure this week:

• Positive Sentiment: Third-quarter results exceeded consensus: AtriCure reported $0.17 per share and $154.45 million in revenue. The earnings beat and higher revenue likely underpin the improved analyst outlook. AtriCure Q3 earnings results
• Positive Sentiment: Management forecast 2026 adjusted EBITDA of $91 million to $94 million and expects to complete BoxX-NoAF enrollment by year-end, providing an earnings outlook and clinical-program milestone for investors to watch. 2026 EBITDA outlook and BoxX-NoAF enrollment
• Positive Sentiment: Several firms lifted their targets after the results. Piper Sandler reaffirmed Overweight and raised its target to $70; Needham also raised its target to $70 with a Buy rating, while Canaccord raised its target to $67 and maintained Buy. These targets suggest further potential upside from the cited $65.53 reference price. Analysts raise AtriCure forecasts
• Negative Sentiment: JPMorgan raised its target substantially, from $36 to $62, but retained a Neutral rating; that target is below the cited $65.53 reference price and signals valuation caution. JPMorgan rating and target

AtriCure Company Profile

AtriCure, Inc is a medical device company that develops and sells products for the surgical treatment of atrial fibrillation (AFib) and related conditions. Its technologies are designed to support cardiac surgeons and electrophysiologists performing tissue ablation, left atrial appendage management and other procedures intended to restore or maintain normal heart rhythm.

The company’s product portfolio includes the AtriClip device, which is used to exclude the left atrial appendage, along with surgical ablation systems such as the Isolator Synergy clamps and cryoablation products.