Why BIOLASE Shares Are Surging Friday

BIOLASE, Inc. BIOL shares are surging after the company reported better-than-expected fourth-quarter FY23 EPS results.

Revenue of $13.49 million missed the consensus of $13.55 million. Gross profit stood at $3.52 million vs. $3.60 million a year ago.

EPS loss of $(1.76) was better than the consensus of $(2.56).

As of December 31, 2023, cash and cash equivalents stood at $6.57 million.

John Beaver, President and Chief Executive Officer, said, “The increased utilization of our installed base is a bullish sentiment, as evidenced by the 20% increase in our consumable sales during the year, so our goal is to accelerate growth while continuing to improve our operations.”

“Greater adoption of our dental lasers, coupled with the expansion of our gross margins and lower operating expenses, will allow us to meet our revenue and profitability objectives for 2024.”

Outlook: BIOLASE expects first-quarter net revenue to exceed $10.0 million vs. consensus of $10.796 million, and relatively flat Y/Y.

For FY24, the company expects net revenue to increase between 6% and 8% Y/Y to $52 million and $53 million (vs. $53.068 million estimate) and expects positive adjusted EBITDA results.

The outlook reflects the continued adoption of lasers and consumables by the dental community, including general dentists, dental specialists, dental hygienists, and group practice entities (DSOs).

Investors can gain exposure to BIOLASE via Vanguard Extended Market ETF VXF.

Price Action: BIOL shares are up 28% at $0.1922 on the last check Friday.

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