TELA Bio Inc. (NASDAQ:TELA) Recent Earnings Shows Major Concern

TELA Bio Inc. (NASDAQ:TELA) Recent Earnings Shows Major Concern


The TELA Bio Inc. (TELA) shares are trading at lower $13.00 and the avg recommendation for the stock is Strong Buy. The current analyst price target stands at $18.75.

To add more color to this target, the company’s high over the last year is $23.55 and the low is $5.25. Over the last 52 weeks, TELA is down -44.79% while the S&P 500 is up 1.47%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, TELA reported a profit of $2.28 million. TELA Bio Inc. also saw revenues increase to $3.73 million. In addition, TELA has free cash flow of -$7.38 million as of 03-2020 The company’s EBITDA came in at -$6.37 million which compares well with its peers.

TELA Return on Equity (ROE) is 45.50%, and its Return on Assets is -66.70%. All told, it is clear that, TELA needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. TELA has a short ratio of 1.22 and outstanding shares of 11.41M.

Company Outlook

TELA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.46 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.61. TELA Bio Inc. TELA also noted assets of $58.84 million at the end of the last quarter. Investors should also keep an eye on sector updates as TELA has historically followed its peers on positive news.

All told, TELA Bio Inc. TELA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, TELA represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

TELA Bio Inc. TELA is now commanding a market cap of 197.08M and a float of 9.59M. TELA is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of TELA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in TELA, either long or short, and we have not been compensated for this article.