Picard Medical Inc. (NYSE: PMI) shares surged Monday after the artificial heart maker's second-quarter revenue nearly doubled Wall Street expectations, helping investors look past a wider-than-expected per-share loss.

Picard Medical Revenue Jumps 39%

Picard Medical reported a quarterly loss of $3.05 per share, missing the analyst estimate for a loss of $1.50 per share. But revenue climbed 39% year over year to $2.95 million, beating the $1.55 million analyst estimate.

Gross profit improved to about $600,000 from a gross loss of roughly $100,000 a year earlier. Gross margin reached 20.9%, compared with negative 6% in the prior-year quarter. The company's net loss narrowed 16% to about $5.7 million from $6.7 million.

Artificial Heart Program Advances

The company continued preclinical development of its next-generation Emperor Total Artificial Heart. During the quarter, it completed acute implant studies and presented new data at an industry conference.

Interim CEO Richard Fang said the company remains focused on improving its financial position while investing in long-term growth. It also continues to evaluate financing opportunities to support operations. In July, the NYSE American accepted its compliance plan, giving the company more time to meet listing standards. The company completed a 1-for-50 reverse stock split on July 31.

Picard Medical Price Action

PMI Price Action: Picard Medical shares were trading up 27.10% at $4.070 at the time of publication on Monday, according to market data.