Back to top

Bull of the Day: InMode Ltd. (INMD)

Read MoreHide Full Article

InMode Ltd. (INMD - Free Report) is an Israeli-based medical technology company that develops, manufactures and markets devices harnessing novel radio-frequency technology. Its surgical tools are minimally invasive, and mainly used for plastic surgery, gynecology, dermatology, otolaryngology and ophthalmology.

InMode recently went public, and was one of the best IPOs of last year. Shares gained more than 200% in the first four months of trading.

Q4 Earnings Better-Than-Expected

There was a lot riding on InMode’s fourth quarter earnings, especially after its stellar performance in the third quarter where revenue jumped 57% year-over-year and earnings rose 62%.

But Q4 managed to beat expectations once again; both the company’s top and bottom line easily beat the Zacks Consensus Estimate. And, shares were up as much as 10.5% after the report was released.

Revenue in the quarter increased 63% year-over-year thanks to the continued expansion of its direct sales organization in the U.S. International revenue surged 71%.

Looking ahead to 2020, management expects to generate $190 million to $198 million in revenue, with 85% to 87% in gross margin; non-GAAP earnings are expected to fall in the range of $1.85 to $1.93 a share.

 

InMode Ltd. Price and Consensus

 

Shares of InMode are up over 80% in the last six months, thanks to investor optimism after the company’s last two earnings releases. Comparatively, the S&P 500 has returned about 14.3%. Earnings estimates have been rising too, and InMode is a Zacks Rank #1 (Strong Buy) pick right now.

For the current fiscal year, one analyst has revised their bottom line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up 10 cents from $1.76 to $1.86. 2020 looks strong too, with earnings expected to continue double-digit year-over-year growth.

InMode is banking on two specific procedure categories, aesthetic surgery and hands-free aesthetic procedures, to be main growth drivers in the coming years. And the company has a potentially huge addressable market, in the U.S. and abroad, since the desire and demand for aesthetic procedures (especially ones that can contour the body and face without surgery) looks to only increase.

If you’re an investor searching for a unique medical stock to add to your portfolio, make sure to keep INMD on your shortlist.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


InMode Ltd. (INMD) - free report >>

Published in