A month has gone by since the last earnings report for Inari Medical, Inc. (NARI Quick QuoteNARI - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Inari Medical, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Inari Medical Q4 Earnings Match, Revenues Beat Estimates

Inari Medical, Inc. reported fourth-quarter 2021 adjusted earnings per share of 2 cents, which came in line with the Zacks Consensus Estimate. The company had reported earnings of 13 cents per share in the year-ago quarter.

On a GAAP basis, net income per share was 2 cents per share, compared with the year-ago quarter’s figure of 14 cents.

For full-year 2021, the company reported an adjusted EPS of 18 cents, down 33.3% from the previous year.

Revenue Details

The company reported revenues of $83.2 million, which soared 71% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 12.4%.

In 2021, the company reported $277 million, up 98% from the previous year.

Q4 Highlights

The company treated 7,700 patients, up 15% on a sequential basis. In fact, non-COVID patients led to above 90% of overall procedures and sequential procedure growth in the quarter under review.

Inari Medical enrolled the first patient into its PEERLESS randomized controlled trial in pulmonary embolism (PE), while it enrolled the final patient into the U.S. arm of the FLASH PE registry. The company also enrolled the final patient with regard to the CLOUT deep vein thrombosis (DVT) registry.

The company ended 2021 with above 200 U.S. sales territories.

Margins

Gross profit in the reported quarter was $74.9 million, up 66.8% year over year. As a percentage of revenues, gross margin in the quarter was 90.1%, down 230 basis points (bps).

Research and development expenses were $18.7 million, up 186.5% from the year-ago quarter. Meanwhile, selling, general and administrative expenses amounted to $54.5 million, up 73.5% on a year-over-year basis.

Operating income amounted to $1.7 million compared with the year-ago quarter’s figure of $6.9 million. As a percentage of revenues, operating margin in the quarter was 2.1%, down 1230 basis bps.

Financial Position

The company exited the fourth quarter with cash, cash equivalents and short-term investments of $176.1 million, up from $162.6 million on a sequential basis.

Cumulative net cash provided by operating activities at the end of the fourth quarter was $25.5 million, compared with $1.9 million in the prior-year quarter.

2022 Revenue Outlook

For 2022, the company projects revenues to be $350-$360 million. The Zacks Consensus Estimate for the same is pegged at $358.2 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -228.21% due to these changes.

VGM Scores

At this time, Inari Medical, Inc. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Inari Medical, Inc. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.