Nephros (NASDAQ:NEPH) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Nephros (NASDAQ:NEPH) released its quarterly earnings data on Thursday. The company reported $0.05 EPS for the quarter, beating the consensus estimate of $0.02 by $0.03, FiscalAI reports. The company had revenue of $5.62 million during the quarter, compared to the consensus estimate of $5.49 million. Nephros had a return on equity of 11.97% and a net margin of 8.86%.

Here are the key takeaways from Nephros’ conference call:

• Revenue and profitability grew: Third-quarter revenue rose 18% year over year to $5.6 million, while nine-month revenue increased 20% to $16.9 million. Nine-month net income grew to $1.8 million from $1.1 million, and adjusted EBITDA rose to $2.0 million from $1.4 million.
• Recurring business and customer reach expanded: Core programmatic revenue grew 19% for the first nine months, and active customer sites reached a record 1,766. Management said repeat orders and new installations support future replacement-filter demand.
• Gross margins came under pressure: Third-quarter gross margin fell to 58% from 61%, with higher inventory, shipping, handling and tariff costs, as well as a greater share of lower-margin service revenue, contributing to the decline. Management said it is working on pricing, sourcing, freight and operational efficiency.
• Nephros is pursuing broader markets and services: Healthcare remained its core market, while commercial and industrial customers accounted for 17% of new sites in the quarter. Management is also investing in service and education to support adoption and identify new product opportunities, though it said education’s return is still being evaluated.

Nephros Price Performance

NEPH traded down $0.30 during trading on Friday, hitting $2.79. The stock had a trading volume of 104,011 shares, compared to its average volume of 46,256. The company has a 50 day moving average price of $3.79 and a 200-day moving average price of $3.65. Nephros has a one year low of $2.66 and a one year high of $6.42. The firm has a market cap of $30.33 million, a price-to-earnings ratio of 15.50 and a beta of 1.76.

Analyst Upgrades and Downgrades

NEPH has been the topic of a number of recent analyst reports. Northland Securities began coverage on Nephros in a research report on Friday, July 17th. They set a “market perform” rating and a $4.00 price target on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Nephros in a research note on Friday, October 30th. Zacks Research raised Nephros to a “hold” rating in a report on Monday, July 20th. Finally, Benchmark restated a “speculative buy” rating on shares of Nephros in a research note on Tuesday, August 18th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $4.00.

Nephros Company Profile

Nephros, Inc is a medical device company that develops and sells filtration products designed to improve water quality and reduce the risk of waterborne contamination. Its technologies are based primarily on ultrafiltration membranes that remove bacteria, viruses, endotoxins, cysts and other impurities from water.

The company serves the healthcare market with filtration systems for hemodialysis and infection-control applications. Its products are designed for use in hospitals, dialysis centers and other healthcare facilities where purified water is important for patient care and clinical operations.

Nephros also offers commercial water-filtration products for applications such as foodservice, hospitality, commercial buildings and healthcare facilities.