A month has gone by since the last earnings report for Shockwave Medical (SWAV Quick QuoteSWAV - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Shockwave Medical 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.

Shockwave Medical Beats on Q2 Earnings & Revenues

Shockwave Medical reported second-quarter 2022 earnings per share of 68 cents, which surpassed the Zacks Consensus Estimate of 43 cents by 58.1%. It had reported a loss of 1 cent in the year-ago quarter.

Revenue Details

The company reported revenues of $120.7 million, which surged a whopping 116% from the prior-year quarter. The top line also outpaced the Zacks Consensus Estimate by 12.5%.

The introduction of the coronary product — Shockwave C2 — in the United States in February 2021, as well as sustained recovery from the pandemic-induced impact and higher adoption of Shockwave products, contributed to the improvement.

Q2 Highlights

During the quarter, the company received regulatory approval to market and sell the Shockwave IVL System in China.

Margins

Gross profit in the reported quarter was $104 million, soaring 126.1% year over year. As a percentage of revenues, the gross margin in the quarter was 86%, up 400 basis points (bps).

Sales and marketing expenses amounted to $40.5 million, up 57.6% from the prior-year quarter. R&D expenses totaled $20.8 million, up 75.7% on a year-over-year basis.

Operating income totaled $29.6 million against the year-ago quarter’s operating loss of $180,000.

Financial Position

The company exited the second quarter with cash, cash equivalents and investments of $224.9 million, compared with $201.1 million in the previous quarter.

Total assets amounted to $417.1 million, compared with $372.5 million at the end of the first quarter.

2022 Revenue Outlook Raised

For 2022, Shockwave Medical now expects revenues in the range of $465 million to $475 million (up from the previously guided band of $435-$455 million), reflecting growth of 96-100% over the prior-year period.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 25.46% due to these changes.

VGM Scores

At this time, Shockwave Medical has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Shockwave Medical has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Shockwave Medical is part of the Zacks Medical - Instruments industry. Over the past month, Inogen (INGN Quick QuoteINGN - Free Report) , a stock from the same industry, has gained 0.1%. The company reported its results for the quarter ended June 2022 more than a month ago.

Inogen reported revenues of $103.38 million in the last reported quarter, representing a year-over-year change of +1.8%. EPS of -$0.02 for the same period compares with $0.22 a year ago.

For the current quarter, Inogen is expected to post a loss of $0.47 per share, indicating a change of -188.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -13.7% over the last 30 days.

Inogen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.