On July 31, 2024, LivaNova PLC (LIVN, Financial) released its 8-K filing for the second quarter of 2024, showcasing robust financial performance and an optimistic outlook for the remainder of the year. The UK-based medical device firm, known for its cardiovascular and neuromodulation solutions, reported significant revenue and earnings growth, surpassing analyst estimates.
Quarterly Financial Highlights
LivaNova PLC (LIVN, Financial) reported second-quarter revenue of $318.6 million, an 8.4% increase on a reported basis and a 9.6% increase on a constant-currency basis compared to the same period last year. Excluding the impact of the Advanced Circulatory Support (ACS) segment wind down, revenue increased by 10.8% on a constant-currency basis.
On a U.S. GAAP basis, the company achieved diluted earnings per share (EPS) of $0.30, significantly higher than the $0.02 reported in Q2 2023. Adjusted diluted EPS was $0.93, surpassing the analyst estimate of $0.86.
Segment Performance
The Cardiopulmonary segment saw a revenue increase of 12.7% on a reported basis and 14.5% on a constant-currency basis, driven by strong sales of the Essenz™ Perfusion System and consumables demand. Neuromodulation revenue grew by 7.3% on a reported basis and 7.8% on a constant-currency basis, with growth across all regions fueled by an increase in total implants.
| Segment | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | % Change | Constant-Currency % Change |
|---|---|---|---|---|
| Cardiopulmonary | $173.7 | $154.1 | 12.7% | 14.5% |
| Neuromodulation | $142.9 | $133.2 | 7.3% | 7.8% |
| Other | $2.0 | $6.6 | (69.9%) | (69.9%) |
| Total Net Revenue | $318.6 | $293.9 | 8.4% | 9.6% |
Income Statement and Key Metrics
Operating income for Q2 2024 was $40.2 million, a substantial increase from $17.4 million in Q2 2023. Adjusted operating income was $66.9 million, up from $49.5 million in the same period last year. Net income for the quarter was $16.3 million, compared to $1.2 million in Q2 2023.
Key metrics such as gross profit and operating expenses also showed positive trends. Gross profit increased by 6.7% to $218.9 million, while operating expenses were managed effectively, with a slight increase in selling, general, and administrative expenses and a decrease in research and development expenses.
Challenges and Additional Events
Despite the strong performance, LivaNova PLC (LIVN, Financial) faced some challenges. The Constitutional Court of Italy's ruling on the payback law led to an increased reserve of $6.6 million, impacting net revenue. Additionally, the European Court of Justice's judgment on the SNIA litigation could have future implications, although a final decision is not expected until at least 2025.
Full-Year 2024 Guidance
LivaNova PLC (LIVN, Financial) has raised its full-year 2024 revenue growth guidance to between 7% and 8% on a constant-currency basis. Excluding the impact of the ACS segment wind down, the company expects revenue growth between 9% and 10%. Adjusted diluted EPS for 2024 is now projected to be in the range of $3.10 to $3.20.
"In the second quarter, LivaNova achieved strong revenue and operating income growth,” said Vladimir Makatsaria, Chief Executive Officer of LivaNova. "Capitalizing on this momentum to achieve sustainable above-market growth over the long-term remains a key priority."
For more detailed information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from LivaNova PLC for further details.
