Establishment Labs (ESTA) CFO Departure Not to Overshadow Strong Growth

Establishment Labs (NASDAQ: ESTA) announced Monday that its CFO, Renee Gaeta, will step down from her position effective July 30th, 2021. Raj Denhoy, current Head of Strategy and Investor Relations, will take over as Interim CFO following her departure.

The company also announced preliminary unaudited Q2 revenue of $31M-$32M, representing a nearly 200% growth YoY. The result tops Q1 revenues of ~$30M and puts the company well on track to achieve its FY21 guidance of $118M-$122M, published during the Q1 earnings call.

In the light of strong numbers, Cowen analyst Joshua Jennings believes the CFO departure is not ideal but should not overshadow the otherwise great growth rate. He goes on to point out that the departure is personal in nature and the “resignation decision is straightforward and understandable.”

The analyst remains highly optimistic about the company’s performance and views further upwards revisions to guidance as plausible: “ESTA expects to deliver 2Q revenue of $31M-$32M, which reflects growth of 196% to 206% off a soft pandemic comp. This preliminary result also implies sequential acceleration from the company’s 1Q performance, which saw revenue of just over $30M. Breast aesthetic procedure volumes have clearly made a solid recovery through the first six months of 2021 and ESTA could positively revise its FY’21 topline guidance target on the 2Q earning call scheduled for July 29th.”

COWEN maintains an “Outperform” rating on the shares and a $95 Price Target.

Written by Vlad Schepkov | [email protected]

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