MiMedx Beats on Revenue and Guidance is Bullish $MDXG

MiMedx (MDXG) announced Q4 earnings this morning and exceeded the upper-end of their guidance with revenue of $39.6 million – up 120% year over year. They reported full-year revenue of $118.2 million which doubled 2013 revenue and also exceeded the upper-end of their guidance. But the story for investors is the fact that they guided in-line.

Why is an in-line guide bullish for investors? 

After MiMedx reported Q3 earnings and guidance, the stock popped to a high of $11.97; then came a subpoena from federal regulators relating to MiMedx marketing activities of one of their secondary products. The stock fell over 18% on the news. The deluge of lawsuit announcements that followed have held down the stock price as investors worried that this would somehow affect sales growth. Which brings me to the point: today, MiMedx guided in-line, which means they provided the same guidance that sent the share price to a high of $11.97 back in December. Translation: MiMedx does not believe that the federal inquiry will affect sales growth; which effectively kills the Bear. MiMedx is currently trading at $9.66 which implies a 23% upside from here.

Disclosure: I am long MiMedx

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