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Inari Medical (NARI) Q3 Earnings Beat, Revenues Rise Y/Y
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Inari Medical, Inc. (NARI - Free Report) reported third-quarter 2022 net loss per share of 19 cents, narrower than the Zacks Consensus Estimate of a loss of 24 cents but wider than the year-ago loss of 6 cents per share.
Revenue Details
The company reported revenues of $96.2 million, which surged 32% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 6.1%. Product introductions and continued U.S. commercial expansion contributed to the improvement.
Q3 Highlights
Inari’s core business was driven by strong procedural growth across both ClotTriever and FlowTriever product lines. The company derived 31% of its revenues from the sale of ClotTriever products during the third quarter of 2022 and 69% from the sale of FlowTriever.
During the quarter, Inari launched two new products — Protrieve and InThrill, bringing its total new product launches this year to six. The company believes InThrill represents an additional $1 billion market opportunity.
Margins
Gross profit in the reported quarter was $85.1 million, up 29.1% year over year. As a percentage of revenues, the gross margin in the quarter was 88.5%, down 180 basis points (bps).
Research and development expenses were $19.1 million, up 52.9% from the year-ago quarter. Selling, general and administrative expenses amounted to $75.8 million, up 35.2% on a year-over-year basis.
Inari Medical, Inc. Price, Consensus and EPS Surprise
Operating loss totaled $9.8 million compared with the year-ago quarter’s operating loss of $2.7 million.
Financial Position
The company exited the third quarter with cash, cash equivalents and short-term investments of $319.2 million, down from $330.5 million on a sequential basis.
2022 Revenue Guidance
For 2022, the company raised its guidance for revenues to the range of $373 million to $375 million from the previous range of $360 million – $370 million. The Zacks Consensus Estimate for the same is pegged at $368.2 million.
Our Take
Inari Medical exited the third quarter on a strong note, wherein both earnings and revenues beat the consensus mark. Apart from treating a large number of patients in the quarter under review, the company made substantial progress on all its growth drivers. The company’s plans to launch several products later this year buoy optimism.
However, the incurrence of operating loss remains a concern. Contraction in gross margin is a woe.
Zacks Rank and Stocks to Consider
Currently, Inari carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health, Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
Elevance Health, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an earnings yield of 5.5% against the industry’s (2.3%). ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, having a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $384 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 22.7% for 2022. MEDP’s earnings surpassed estimates in the trailing four quarters, the average being 22.04%.
Merit Medical, flaunting a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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Inari Medical (NARI) Q3 Earnings Beat, Revenues Rise Y/Y
Inari Medical, Inc. (NARI - Free Report) reported third-quarter 2022 net loss per share of 19 cents, narrower than the Zacks Consensus Estimate of a loss of 24 cents but wider than the year-ago loss of 6 cents per share.
Revenue Details
The company reported revenues of $96.2 million, which surged 32% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 6.1%. Product introductions and continued U.S. commercial expansion contributed to the improvement.
Q3 Highlights
Inari’s core business was driven by strong procedural growth across both ClotTriever and FlowTriever product lines. The company derived 31% of its revenues from the sale of ClotTriever products during the third quarter of 2022 and 69% from the sale of FlowTriever.
During the quarter, Inari launched two new products — Protrieve and InThrill, bringing its total new product launches this year to six. The company believes InThrill represents an additional $1 billion market opportunity.
Margins
Gross profit in the reported quarter was $85.1 million, up 29.1% year over year. As a percentage of revenues, the gross margin in the quarter was 88.5%, down 180 basis points (bps).
Research and development expenses were $19.1 million, up 52.9% from the year-ago quarter. Selling, general and administrative expenses amounted to $75.8 million, up 35.2% on a year-over-year basis.
Inari Medical, Inc. Price, Consensus and EPS Surprise
Inari Medical, Inc. price-consensus-eps-surprise-chart | Inari Medical, Inc. Quote
Operating loss totaled $9.8 million compared with the year-ago quarter’s operating loss of $2.7 million.
Financial Position
The company exited the third quarter with cash, cash equivalents and short-term investments of $319.2 million, down from $330.5 million on a sequential basis.
2022 Revenue Guidance
For 2022, the company raised its guidance for revenues to the range of $373 million to $375 million from the previous range of $360 million – $370 million. The Zacks Consensus Estimate for the same is pegged at $368.2 million.
Our Take
Inari Medical exited the third quarter on a strong note, wherein both earnings and revenues beat the consensus mark. Apart from treating a large number of patients in the quarter under review, the company made substantial progress on all its growth drivers. The company’s plans to launch several products later this year buoy optimism.
However, the incurrence of operating loss remains a concern. Contraction in gross margin is a woe.
Zacks Rank and Stocks to Consider
Currently, Inari carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Elevance Health, Inc. (ELV - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
Elevance Health, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $7.53, which beat the Zacks Consensus Estimate by 6.1%. Revenues of $39.63 billion outpaced the consensus mark by 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Elevance Health has an earnings yield of 5.5% against the industry’s (2.3%). ELV’s earnings surpassed estimates in all the trailing four quarters, the average being 4.1%.
Medpace Holdings, having a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $384 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 22.7% for 2022. MEDP’s earnings surpassed estimates in the trailing four quarters, the average being 22.04%.
Merit Medical, flaunting a Zacks Rank #1, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.