What occurred

Shares of Treace Medical Ideas (TMCI 20.96%) had been up 21% as of three p.m. EST Wednesday afternoon. The orthopedic medical machine firm’s shares rose after it reported fourth-quarter earnings after the markets closed on Tuesday. 

So what

Treace makes Lapiplasty surgical procedure kits, which orthopedic surgeons use to carry out minimally invasive surgical procedure on bunions. Gross sales of Treace’s kits have been brisk, so income is up. The corporate reported This fall income of $49.8 million, up 49% 12 months over 12 months and up 51% sequentially. The corporate’s full-year income was up 50% to $141.8 million.

The healthcare firm additionally trimmed its losses, no less than within the quarter. It misplaced $4.4 million, or $0.08 in earnings per share (EPS) within the quarter after shedding $6.6 million, or an EPS lack of $0.12 in the identical interval a 12 months in the past. For the 12 months, the corporate mentioned it misplaced $42.8 million, or $0.77 in EPS loss in comparison with a lack of $20.7 million and EPS lack of $0.43 in 2021.

Now what

The largest takeaway from the corporate’s earnings report is that its base of surgeons who carry out Lapiplasty has expanded. Firm founder and CEO John T. Treace mentioned within the launch:

Almost 1-in-4 of the estimated 10,000 U.S. surgeons who carry out bunion surgical procedure used Lapiplasty in 2022, which demonstrates the rising adoption of our differentiated applied sciences.

In keeping with firm analysis, the marketplace for the corporate’s Lapiplasty programs has the potential for $5 billion in peak gross sales with 65 million People residing with bunions. In 2023, the corporate mentioned it expects income to be between $187 million to $193 million, exhibiting progress of 32% to 36% over 2022 income.