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Shockwave Medical (SWAV) Up 35.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Shockwave Medical (SWAV - Free Report) . Shares have added about 35.4% 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 drivers.
Shockwave Medical Q1 Earnings and Revenues Top Estimates
Shockwave Medical, Inc. reported first-quarter 2022 adjusted earnings per share of 39 cents, which surpassed the Zacks Consensus Estimate of 19 cents by 105.3%. It had reported a loss of 68 cents in the year-ago quarter.
Revenue Details
The company reported revenues of $93.6 million, which surged a whopping 194% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 5.7%.
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.
Q1 Highlights
During the quarter, the company received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan.
Apart from this, the company announced the global availability and introduction of the Shockwave M5+ peripheral IVL catheter post the receipt of both CE mark and U.S. FDA clearance.
Margins
Gross profit in the reported quarter was $80.7 million, soaring 236.3% year over year. As a percentage of revenues, gross margin in the quarter was 86.2%, up 1090 basis points (bps).
Sales and marketing expenses amounted to $35.9 million, up 49.9% from the prior-year quarter. Research and development expenses totaled $17 million, up 65.6% on a year-over-year basis.
Operating income totaled $15.4 million against the year-ago quarter’s operating loss of $17.5 million.
Financial Position
The company exited the first quarter with cash, cash equivalents and investments of $201.1 million, compared with $200.9 million in the previous quarter.
Total assets amounted to $372.5 million, compared with $345.7 million at the end of the fourth quarter.
2022 Revenue Outlook
For 2022, Shockwave Medical expects revenues in the range of $435 million to $455 million (up from the previously guided band of $405-$425 million), reflecting growth of 83-92% over the prior-year period.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 45.66% due to these changes.
VGM Scores
At this time, Shockwave Medical has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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 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 belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Hologic (HOLX - Free Report) , has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Hologic reported revenues of $1.44 billion in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $2.07 for the same period compares with $2.59 a year ago.
Hologic is expected to post earnings of $0.69 per share for the current quarter, representing a year-over-year change of -48.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
Hologic has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Shockwave Medical (SWAV) Up 35.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Shockwave Medical (SWAV - Free Report) . Shares have added about 35.4% 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 drivers.
Shockwave Medical Q1 Earnings and Revenues Top Estimates
Shockwave Medical, Inc. reported first-quarter 2022 adjusted earnings per share of 39 cents, which surpassed the Zacks Consensus Estimate of 19 cents by 105.3%. It had reported a loss of 68 cents in the year-ago quarter.
Revenue Details
The company reported revenues of $93.6 million, which surged a whopping 194% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 5.7%.
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.
Q1 Highlights
During the quarter, the company received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan.
Apart from this, the company announced the global availability and introduction of the Shockwave M5+ peripheral IVL catheter post the receipt of both CE mark and U.S. FDA clearance.
Margins
Gross profit in the reported quarter was $80.7 million, soaring 236.3% year over year. As a percentage of revenues, gross margin in the quarter was 86.2%, up 1090 basis points (bps).
Sales and marketing expenses amounted to $35.9 million, up 49.9% from the prior-year quarter. Research and development expenses totaled $17 million, up 65.6% on a year-over-year basis.
Operating income totaled $15.4 million against the year-ago quarter’s operating loss of $17.5 million.
Financial Position
The company exited the first quarter with cash, cash equivalents and investments of $201.1 million, compared with $200.9 million in the previous quarter.
Total assets amounted to $372.5 million, compared with $345.7 million at the end of the fourth quarter.
2022 Revenue Outlook
For 2022, Shockwave Medical expects revenues in the range of $435 million to $455 million (up from the previously guided band of $405-$425 million), reflecting growth of 83-92% over the prior-year period.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 45.66% due to these changes.
VGM Scores
At this time, Shockwave Medical has an average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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 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 belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Hologic (HOLX - Free Report) , has gained 4.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Hologic reported revenues of $1.44 billion in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $2.07 for the same period compares with $2.59 a year ago.
Hologic is expected to post earnings of $0.69 per share for the current quarter, representing a year-over-year change of -48.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
Hologic has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.