Establishment Labs Holdings Inc. (ESTA) stock surged 5.38% in pre-market trading on Thursday, following the company's impressive fourth-quarter earnings report and positive outlook for its US market entry.

The medical device company reported a robust start in the US market, generating $3.3 million in sales in the first two months of the launch, exceeding initial expectations. This strong performance, coupled with a 41% increase in total revenue for the fourth quarter to $44.5 million, driven by higher production volumes and early US sales, has bolstered investor confidence.

Furthermore, Establishment Labs has successfully onboarded over 650 accounts in the US, with 450 placing orders and an impressive 88% reordering rate, indicating strong market acceptance. The company is on track to achieve its first positive EBITDA quarter in 2025, supported by gross margin expansion and operational efficiency improvements.

Analysts have reacted positively to the company's prospects, with BTIG analyst Marie Thibault reiterating a Buy rating on the stock and setting a price target of $62. The company's efforts to streamline operations, with operating expenses reduced by $12.5 million in 2024 compared to 2023, despite significant investments in US commercial operations, have also contributed to the stock's upward momentum.