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Inari Medical (NARI) Q3 Earnings and Revenues Beat Estimates

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Inari Medical, Inc. (NARI - Free Report) reported third-quarter 2021 adjusted loss per share of 6 cents, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The company had reported earnings of 12 cents per share in the year-ago quarter.

GAAP loss per share was 6 cents per share, against the year-ago quarter’s income of 13 cents.

Revenue Details

The company reported revenues of $72.9 million, which soared 88.4% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 17.3%. New product launches and sustained U.S. commercial expansion contributed to the improvement.

Q3 Highlights

The company treated a record number of patients, which boosted revenues in the quarter under review, thereby significantly expanding its commercial footprint.

Inari Medical, Inc. Price, Consensus and EPS Surprise

Inari Medical, Inc. Price, Consensus and EPS Surprise

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

Inari Medical announced the FDA clearance of ClotTriever Bold Thrombectomy Catheter that has been developed to treat older clots and more advanced deep vein thrombosis (DVT), thereby potentially opening a large new total available market (TAM).

The company put forth data from the first 500 patients enrolled in the FLASH pulmonary embolism (PE) registry, which confirmed best in class safety and on-table improvement with respect to hemodynamic metrics, while exhibiting much lower rates of mortality and long-term consequences for PE survivors than published literature.

Margins

Gross profit in the reported quarter was $65.9 million, up 85.6% year over year. As a percentage of revenues, gross margin in the quarter was 90.3%, down 140 basis points (bps).

Research and development expenses were $12.5 million, up 139.6% from the year-ago quarter. Meanwhile, selling, general and administrative expenses amounted to $56.1 million, up 143.1% on a year-over-year basis.

Operating loss amounted to $2.7 million against the year-ago quarter’s operating income of $6.5 million.

Financial Position

The company exited the third quarter with cash, cash equivalents and short-term investments of $162.6 million, up from $91.3 million on a sequential basis.

Cumulative net cash provided by operating activities at the end of the third quarter was $10.5 million, compared to $3.5 million in the prior-year quarter.

2021 Revenue Outlook Raised

In spite of the continued uncertainties and challenges in its operating environment stemming from the COVID-19 pandemic, the company has updated its financial outlook.

For 2021, the company currently projects revenues to be $266-$268 million (up from the prior range of $250-$255 million). The Zacks Consensus Estimate for the same is pegged at $254.7 million.

Our Take

Inari Medical exited the third quarter on a solid note, wherein both earnings and revenues beat the same. New product launches and sustained U.S. commercial expansion are encouraging. Apart from treating a record number of patients in the quarter under review, the company made substantial progress on all of its five growth drivers.

However, incurrence of operating loss continues to remain a concern. Contraction in gross margin is a woe.

Zacks Rank

Currently, Inari Medical carries a Zacks Rank #4 (Sell).

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) , and AngioDynamics, Inc. (ANGO - Free Report) . While both Thermo Fisher and West Pharmaceutical carry a Zacks Rank of 2 (Buy), AngioDynamics sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%.

West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%.

AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%.