ConforMIS, Inc.  (NASDAQ: CFMS)

ConforMIS, Inc. (CFMS), a medical technology company yesterday reported their fourth quarter and full year 2016 financial results. The company reported a fourth quarter loss of $15.7 million. ConforMIS reported fourth quarter earnings of a loss of $0.37 per share which fell short of analyst estimates of a loss of $0.30 per share. ConforMIS reported fourth quarter revenues of $21.7 million which beat analyst estimates of $21.5 million.  

ConforMIS, Inc. CEO’s Comments

"We reported solid revenue and gross margin results in the fourth quarter of 2016,” said Mark Augusti, President and Chief Executive Officer of ConforMIS, Inc. “Full-year 2016 product revenue increased 26 percent year-over-year on a reported basis and 27 percent year-over-year on a constant currency basis, at the higher-end of our guidance range.”

“Our 2017 guidance for constant currency product revenue growth in the range of 1 percent to 6 percent is not reflective of the underlying health of our U.S. business which we expect to grow in the high-single digit to mid-teens percentage this year over last year,” said Mark Augusti. “Our Rest of World business will be impacted by recent changes to the partial knee replacement reimbursement environment in Germany, our largest international market.

Mark Augusti continued, “2017 will be a transition year for ConforMIS as we focus on improving our long-term growth and profitability profile. We expect continued strength coming from our iTotal PS, which was fully launched in the first half of 2016, and we are focused on improving our commercial execution to drive better results in our base business going forward. Importantly, we expect continued improvements in our gross margin in 2017.”  Globe Newswire

CFMS Technical Analysis

CFMS opened trading yesterday at $8.55 which was down from the previous day’s trading close of $8.60. Shares closed trading yesterday at $8.55 and spiked down after market to $5.08, equivalent to a 41% decrease from the closing price. Taking a look at the daily chart we can see that the last time CFMS traded below these levels we have to go back to May 13th, 2016 when it traded at lows $4.80.

Taking a closer look at the daily chart we can see that before the spike down CFMS had already been in an overall downward trend dating back to October 10th, 2016 when it traded at $10.84. CFMS has a float of 35.07 million shares and traded 1.16 times the normal daily trading volume on Wednesday. For trading purposes, I would like to see CFMS open trading on Thursday below $6.25 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap down.

Company Profile

ConforMIS, Inc., a medical technology company, develops, manufactures, and sells customized joint replacement implants. The company offers customized knee replacement products, including iTotal CR, a cruciate-retaining product; iTotal PS, a posterior cruciate ligament substituting product; iDuo, a customized bicompartmental knee replacement system; and iUni, a customized unicompartmental knee replacement product for treatment of the medial or lateral compartment of the knee, as well as provides iJigs, customized single-use patient-specific instruments. It is also developing iTotal Hip, a customized total hip replacement implant. The company markets and sells its products through direct sales force, independent sales representatives, and distributors in the United States, Germany, the United Kingdom, Austria, Ireland, Switzerland, Singapore, and Hong Kong. ConforMIS, Inc. was founded in 2004 and is headquartered in Bedford, Massachusetts.  Yahoo Finance