Tuesday, endovascular device company ev3 Inc. (EVVV) reported a profit for the third quarter compared to a loss last year, reflecting higher sales driven by the acquisition of Chestnut Medical and lower operating expenses. The company also raised its earnings and revenue expectations for the full-year, while guiding the fourth quarter.
ev3's net income for the quarter was $6.7 million or $0.06 per share, compared with net loss of $7.3 million or $0.07 per share in the year-ago period.
Adjusted net income surged to $19.4 million or $0.17 per share from $3.9 million or $0.04 per share in the same quarter last year. Adjusted results excludes non-cash amortization expense of $6.8 million, non-cash stock-based compensation of $3.6 million and charges relating to the estimated change in fair value of the future contingent consideration associated with the acquisition of Chestnut of $2.3 million.
On average, four analysts polled by Thomson-Reuters expected the company to report earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude one-time items.
Net sales for the quarter increased 5% to $112.8 million from $107.0 million in the same quarter last year. Analysts expected revenues of $110.66 million for the quarter.
Net product sales increased about 13% from the prior year product sales. Excluding negative impact of foreign currency exchange rates, net product sales increased 15% year-over-year.
Segment-wise, peripheral vascular net product sales increased 1% compared to the prior year quarter and 2% on a constant currency basis. Excluding atherectomy, peripheral vascular net sales increased 6% on a constant currency basis and neurovascular net sales, which include product sales from recently acquired Chestnut, increased 37% from the prior-year quarter and 39% on a constant currency basis.
Geographically, ev3 U.S. net product sales increased approximately 8%, international net product sales increased 21% from the prior-year quarter and 26% on a constant currency basis.
Total operating expenses for the quarter decreased to $105.25 million from $111.63 million last year. For the nine months, net income was $28.91 million or $0.27 per share compared with net loss of $44.50 million or $0.43 per in the prior-year. Net sales rose to $322.31 million from $316.0 million last year.
Looking forward, the company expects fourth quarter adjusted net earnings to be in the range of $0.20-$0.24 per share and net sales in the range of $124 million-$128 million. Analysts expect the company to report earnings of $0.07 per share on revenues $120.25 million for the fourth quarter.
For the full year ev3 increased its adjusted earnings guidance to a range of $0.58 to $0.62 per share from previously issued range of $0.47-$0.53 per share and net sales to range between $446 million - $450 million from previously issued range of $435 million-$445 million.
Analysts expect the company to report earnings of $0.10 per share on revenues $440.46 million for the fiscal 2009.
EVVV is currently trading at $12.75, up $1.13 or 9.72% on a volume of 4.57 million shares on the Nasdaq.
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