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Shockwave Medical (SWAV) Beats on Q2 Earnings & Revenues
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Shockwave Medical, Inc. (SWAV - Free Report) reported second-quarter 2022 earnings per share (EPS) 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. Research and development 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.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
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.
Wrapping Up
Shockwave Medical ended the second quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company exhibited significant revenue growth in the second quarter. Expansion in gross margin is encouraging.
Management is optimistic about the continued clinical acceptance and penetration of IVL, as demonstrated by its strong results in the quarter under review as well as a higher outlook for revenues in 2022.
However, an increase in operating expenses remains a concern.
Zacks Rank
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
SmileDirectClub’s loss per share estimates have improved from 57 cents to 50 cents for 2022 and from 44 cents to 42 cents for 2023 in the past 60 days. SWAV has declined 45.1% so far this year.
SmileDirectClub delivered a negative earnings surprise of 18.95%, on average, in the last four quarters.
Estimates for Patterson Companies have improved from earnings of $2.25 to $2.30 for 2022 and $2.42 to $2.48 for 2023 in the past 60 days. PDCO stock has risen 7.9% so far this year.
Patterson Companies delivered an earnings surprise of 16.49%, on average, in the last four quarters.
Alkermes’ earnings per share estimates have improved from a loss of 17 cents to earnings of 20 cents for 2022 and from 31 cents to 50 cents for 2023 in the past 60 days. ALKS has gained 9.3% so far this year.
Alkermes delivered an earnings surprise of 325.48%, on average, in the last four quarters.
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Shockwave Medical (SWAV) Beats on Q2 Earnings & Revenues
Shockwave Medical, Inc. (SWAV - Free Report) reported second-quarter 2022 earnings per share (EPS) 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. Research and development 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.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
ShockWave Medical, Inc. price-consensus-eps-surprise-chart | ShockWave Medical, Inc. Quote
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.
Wrapping Up
Shockwave Medical ended the second quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company exhibited significant revenue growth in the second quarter. Expansion in gross margin is encouraging.
Management is optimistic about the continued clinical acceptance and penetration of IVL, as demonstrated by its strong results in the quarter under review as well as a higher outlook for revenues in 2022.
However, an increase in operating expenses remains a concern.
Zacks Rank
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the pharma/biotech sector include SmileDirectClub , Patterson Companies (PDCO - Free Report) and Alkermes (ALKS - Free Report) , all carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SmileDirectClub’s loss per share estimates have improved from 57 cents to 50 cents for 2022 and from 44 cents to 42 cents for 2023 in the past 60 days. SWAV has declined 45.1% so far this year.
SmileDirectClub delivered a negative earnings surprise of 18.95%, on average, in the last four quarters.
Estimates for Patterson Companies have improved from earnings of $2.25 to $2.30 for 2022 and $2.42 to $2.48 for 2023 in the past 60 days. PDCO stock has risen 7.9% so far this year.
Patterson Companies delivered an earnings surprise of 16.49%, on average, in the last four quarters.
Alkermes’ earnings per share estimates have improved from a loss of 17 cents to earnings of 20 cents for 2022 and from 31 cents to 50 cents for 2023 in the past 60 days. ALKS has gained 9.3% so far this year.
Alkermes delivered an earnings surprise of 325.48%, on average, in the last four quarters.