Kestra Medical Technologies (NASDAQ:KMTS) Issues Earnings Results, Misses Expectations By $0.14 EPS

Kestra Medical Technologies (NASDAQ:KMTS) announced its quarterly earnings results on Monday. The company reported ($0.75) EPS for the quarter, missing analysts’ consensus estimates of ($0.61) by ($0.14), FiscalAI reports. Kestra Medical Technologies had a negative net margin of 138.35% and a negative return on equity of 57.38%. The business had revenue of $30.97 million for the quarter.

Here are the key takeaways from Kestra Medical Technologies’ conference call:

• Positive Sentiment: Kestra reported first-quarter revenue of $31 million, reflecting strong year-over-year growth, and raised fiscal 2027 revenue guidance to $141 million, or 48% growth.
• Positive Sentiment: Gross margin expanded to 56.5%, marking the 11th consecutive quarter of sequential improvement. Management now expects margins to reach the mid-70% range over the next two to three years, above its previous 70% target.
• Positive Sentiment: Commercial momentum remains strong, with new sales representatives ramping faster, deeper penetration in existing accounts, and market share estimated at approximately 15%. Management cited a growing WCD market, increased payer coverage, and continued share gains as key drivers.
• Neutral Sentiment: Kestra is investing in AI and automation for patient adherence, revenue-cycle management, and sales productivity. Management expects limited benefits in fiscal 2027, with more meaningful operating leverage beginning in fiscal 2028 and beyond.
• Negative Sentiment: The company remains loss-making, reporting a $44.1 million GAAP net loss, a $24 million adjusted EBITDA loss, and $32.3 million of operating cash usage in the quarter. Management expects cash burn to decline through the year, while fiscal 2027 operating expenses are projected at approximately $220 million.

Kestra Medical Technologies Price Performance

Shares of NASDAQ:KMTS opened at $24.06 on Tuesday. The company’s fifty day moving average price is $25.26 and its 200-day moving average price is $22.67. The company has a debt-to-equity ratio of 0.16, a current ratio of 4.41 and a quick ratio of 4.41. The firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of -9.94 and a beta of 0.62. Kestra Medical Technologies has a one year low of $17.34 and a one year high of $30.00.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on KMTS shares. Weiss Ratings lowered Kestra Medical Technologies from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, August 31st. Oppenheimer assumed coverage on Kestra Medical Technologies in a research note on Tuesday, July 21st. They set a “market perform” rating on the stock. Wall Street Zen downgraded Kestra Medical Technologies from a “hold” rating to a “sell” rating in a research note on Saturday. BTIG Research reaffirmed a “buy” rating and set a $32.00 target price on shares of Kestra Medical Technologies in a report on Wednesday, September 2nd. Finally, Wolfe Research set a $30.00 price target on shares of Kestra Medical Technologies in a report on Wednesday, July 15th. Four research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $28.14.

Insiders Place Their Bets

In other Kestra Medical Technologies news, insider Brian Webster sold 51,900 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $24.52, for a total value of $1,272,588.00. Following the completion of the sale, the insider directly owned 475,215 shares of the company’s stock, valued at $11,652,271.80. The trade was a 9.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Vaseem Mahboob sold 26,287 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $25.88, for a total transaction of $680,307.56. Following the sale, the chief financial officer owned 60,609 shares of the company’s stock, valued at approximately $1,568,560.92. This represents a 30.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 239,588 shares of company stock valued at $5,802,688 over the last quarter. Insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Kestra Medical Technologies

Several hedge funds have recently made changes to their positions in KMTS. The Manufacturers Life Insurance Company raised its holdings in Kestra Medical Technologies by 6.6% in the first quarter. The Manufacturers Life Insurance Company now owns 92,515 shares of the company’s stock worth $1,844,000 after purchasing an additional 5,731 shares in the last quarter. California State Teachers Retirement System raised its stake in Kestra Medical Technologies by 39.2% during the first quarter. California State Teachers Retirement System now owns 27,835 shares of the company’s stock valued at $555,000 after buying an additional 7,844 shares during the last quarter. Quantinno Capital Management LP purchased a new stake in shares of Kestra Medical Technologies in the first quarter worth $431,000. Bank of New York Mellon Corp boosted its stake in Kestra Medical Technologies by 47.2% in the 1st quarter. Bank of New York Mellon Corp now owns 70,113 shares of the company’s stock worth $1,397,000 after purchasing an additional 22,471 shares in the last quarter. Finally, Spartan Wealth Advisory Services LLC bought a new stake in Kestra Medical Technologies during the 1st quarter valued at about $603,000.

About Kestra Medical Technologies

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.