Is Intersect ENT Inc. (NASDAQ: XENT) Trying To Pull A Fast One On Investors?


Intersect ENT Inc. (NASDAQ: XENT) is set to release the actual results for its 2Q2016 on August 3 and the report will take place after markets close. But the company has already moved ahead to release preliminary results for the quarter, especially results for its topline.

As an investor, you should know that the preliminary results just published by the company could differ from the actual results it will report in August because it is not done with the review of 2Q2016 financial performance. In the same breath, it is important to note that Intersect ENT Inc. (NASDAQ: XENT) has only shared preliminary revenue results without a hint on how the bottom-line changed from a year-ago or the prior quarter. Something that has recently been of great concern among XENT investors is personnel turnover and you should keep a close eye on that as well.

Did 2Q revenue improve?

Intersect ENT Inc. (NASDAQ: XENT) has announced that 2Q revenue will be close to $19.3 million, which suggests that revenue in 2Q likely expanded 27% compared to the same quarter in the prior year. If that turns out to be true, then Intersect’s revenue grew more in the latest quarter compared to the previous quarter.

Intersect reported that its 1Q revenue rose 24.8% YoY to $16.7 million. But despite the growth, the topline number missed the consensus estimate.

However, the $19.3 million revenue expected for 2Q topped the consensus estimate of $18.8 million for the quarter.

What about the bottom-line

Intersect ENT Inc. (NASDAQ: XENT) has not released 2Q preliminary results for the bottom-line. But if you can remember the company logged EPS loss of $0.29 in the prior quarter, which was wider than EPS loss of $0.23 in the year-ago quarter.

But gross margin improved 2% to 81% in 1Q. Investors will be keeping a close eye on what the company reports about its bottom-line and margins.

Personnel turnover at Intersect ENT Inc. (NASDAQ: XENT)

Intersect ENT Inc. (NASDAQ: XENT)’s CEO, Lisa Earnhardt said that the sales force increased to 98 personnel at the end of 2Q. Of the 98 field sales staff, 73 are territory managers and 25 are sales consultants. With that, it appears Intersect is gradually getting over the personnel turnover headache that has make some investors wary of the future of the company.


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