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ShockWave Medical (SWAV) Q2 Earnings, Revenues Top Estimates

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ShockWave Medical, Inc. (SWAV - Free Report) delivered loss per share of a penny in the second quarter of 2021, narrower than the loss of 56 cents reported in the year-ago quarter. Loss per share was also narrower than the Zacks Consensus Estimate of a loss of 41 cents per share.

Revenues in Detail

ShockWave Medical registered revenues of $55.9 million in the second quarter, skyrocketing 443.5% year over year. The figure surpassed the Zacks Consensus Estimate by 28.1%.

The year-over-year top-line surge was driven by the launch of the coronary product — Shockwave C2 — in the United States in February, increased adoption of Shockwave products and continued recovery from the pandemic-led impacts.

Sequentially, revenues improved 75%.

Product Revenues

ShockWave Medical derives revenues from three product lines — Peripheral products (includes sales of M5 and S4 Intravascular Lithotripsy or IVL catheters), Coronary products (includes sales of C2 catheters) and Other products (encompasses sales of generators and related accessories).

Revenues from ShockWave Medical’s peripheral products were $18.8 million in the second quarter of 2021, up 188.7% from the prior-year quarter.

Coronary products generated revenues of $36.7 million in the reported quarter, which shot up 904.7% year over year.

Other products contributed revenues of $0.4 million in revenue in the second quarter of 2021, up 233.1% from the year-ago quarter.

Geographically, ShockWave Medical’s revenues from the United States amounted to $42.9 million, skyrocketing 675% year over year. Revenues from Europe were $10.4 million, which surged 172.9% from the year-ago quarter. Revenues from all other countries amounted to $2.6 million, up 176.3% from the prior-year quarter.

ShockWave Medical, Inc. Price, Consensus and EPS Surprise

ShockWave Medical, Inc. Price, Consensus and EPS Surprise

ShockWave Medical, Inc. price-consensus-eps-surprise-chart | ShockWave Medical, Inc. Quote

Margin Trend

In the quarter under review, ShockWave Medical’s gross profit surged 586.8% to $45.9 million. Gross margin expanded by a huge 1715 basis points (bps) to 82.2%.

Sales and marketing expenses rose 129.5% to $25.7 million. Research and development expenses went up 45.8% year over year to $11.8 million while general and administrative expenses went up 59.8% year over year to $8.6 million. Total operating expenses of $46.2 million increased 86.8% year over year.

Total operating loss was $0.2 million compared with total operating loss of $18 million in the year-ago quarter.

Financial Position

ShockWave Medical exited the second quarter of 2021 with cash and cash equivalents, and short-term investments of $174.7 million compared with $177.4 million at the end of the first quarter.

2021 Guidance

ShockWave Medical, boosted by its strong performances, raised its 2021 outlook.

For 2021, the company expects revenues to be in the range of $218-$223 million, representing 222-229% growth from comparable figure in 2020. This is significantly up from the earlier-provided full-year revenue outlook of $195-$205 million, representing 188-202% growth from comparable figure in 2020.

Our Take

ShockWave Medical ended the second quarter of 2021 with better-than-expected results. The year-over-year narrower loss per share and the stupendous surge in the overall top line are impressive. The company’s strength in its product revenues, along with robust geographical performances, is encouraging as well. Strong product adoption and continued business recovery from the pandemic-led impacts buoy our optimism.

The company received approval for a Transitional Pass-Through payment for Shockwave C2 Coronary IVL device as well as New Technology Add-On Payment for coronary IVL, which are also encouraging. Gross margin expansion also bodes well for the company. An upbeat full-year revenue outlook is another positive.

However, ShockWave Medical’s continued operating loss is concerning. The company’s dependence on third-party suppliers and its limited commercial manufacturing experience are other headwinds.

Zacks Rank and Key Picks

ShockWave Medical currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced their quarterly results are Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Bio-Rad Laboratories, Inc. (BIO - Free Report) .

Encompass Health, sporting a Zacks Rank #1 (Strong Buy), reported second-quarter 2021 adjusted earnings per share (“EPS”) of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%. It currently carries a Zacks Rank #2 (Buy).

Bio-Rad reported second-quarter 2021 adjusted EPS of $3.54, surpassing the Zacks Consensus Estimate by 86.3%. Revenues of $715.9 million surpassed the Zacks Consensus Estimate by 17.3%. It currently carries a Zacks Rank #2.