Nephros (NASDAQ:NEPH) Announces Earnings Results

Nephros (NASDAQ:NEPH) posted its earnings results on Thursday. The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.03, FiscalAI reports. The firm had revenue of $5.62 million during the quarter, compared to analyst estimates of $5.49 million. Nephros had a net margin of 8.38% and a return on equity of 10.60%.

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 Stock Performance

NASDAQ:NEPH traded down $0.30 during trading on Friday, reaching $2.79. The company’s stock had a trading volume of 104,011 shares, compared to its average volume of 59,226. Nephros has a 12 month low of $2.66 and a 12 month high of $6.42. The firm has a market cap of $30.33 million, a price-to-earnings ratio of 29.45 and a beta of 1.76. The firm has a 50 day moving average of $3.82 and a 200-day moving average of $3.66.

Analysts Set New Price Targets

Several research analysts recently weighed in on NEPH shares. Northland Securities started coverage on shares of Nephros in a 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. Benchmark reiterated a “speculative buy” rating on shares of Nephros in a research note on Tuesday, August 18th. Finally, Zacks Research raised shares of Nephros to a “hold” rating in a research report on Monday, July 20th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $4.00.

About Nephros

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.