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Shockwave Medical, Inc. (SWAV - Free Report) reported fourth-quarter 2022 earnings per share (EPS) of $3.71, which surpassed the Zacks Consensus Estimate of 99 cents by 275%. It had reported an EPS of 34 cents in the year-ago quarter.
Revenue Details
The company reported revenues of $144 million, which surged a whopping 71.1% from the prior-year quarter. The top line also surpassed the Zacks Consensus Estimate by 1.1%.
The company’s management stated that it continues to witness strength across the entire Shockwave franchise and geographies. The significant gain in revenues was driven by organic demand, the launch of M5+ catheter, addition of new accounts and appropriate reimbursement.
Internationally, the company’s sales were driven by strong momentum in France and the United Kingdom, and robust contribution from China. The company’s 2023 revenues are likely to be driven by robust demand for existing products, coupled with launch of C2+ coronary product in the United States, which was approved in December.
Q4 Highlights
During the quarter, Shockwave Medical received FDA clearance for its Shockwave C2+ Coronary IVL Catheter, a bit ahead of schedule. The company plans to launch the product in the second half of 2023.
In November 2022, Shockwave Medical announced that the final 1,373-patient cohort analysis from the Disrupt PAD III Observational Study demonstrated consistent Intravascular Lithotripsy (IVL) outcomes in complex and challenging lesions across multiple peripheral vessel beds.
In January 2023, Shockwave Medical announced its entry into a definitive agreement to acquire Neovasc Inc. The transaction is expected to be completed in the first half of 2023. The buyout will add its Reducer System to Shockwave Medical’s portfolio of products. This may aid the company in expanding its global footprint in the cardiovascular disease treatment space and solidifying its position worldwide.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
Gross profit in the reported quarter was $126.5 million, soaring 76.9% year over year. As a percentage of revenues, the gross margin in the quarter was 88%, up 400 basis points.
Sales and marketing expenses amounted to $43.4 million, up 30.7% from the prior-year quarter. Research and development expenses totaled $23.7 million, up 61.2% on a year-over-year basis.
Operating income totaled $42.4 million compared with the year-ago quarter’s $14 million.
Financial Position
The company exited the fourth quarter with cash, cash equivalents and investments of $304.5 million compared with $250.7 million in the previous quarter.
Total assets amounted to $646.1 million, compared with $475.8 million at the end of the third quarter.
2023 Revenue Outlook
For 2023, Shockwave Medical now expects revenues in the range of $660 million to $680 million, implying growth of 35-39% from the prior-year period. The Zacks Consensus Estimate for the same is pegged at $656 million.
Wrapping Up
Shockwave Medical ended the fourth quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company exhibited significant revenue growth in the fourth 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 2023 revenues.
However, an increase in operating expenses is a concern. Staffing issues adversely impacted procedure volumes in some centers during the fourth quarter, which are expected to gradually improve in 2023.
Zacks Rank
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. (CAH - Free Report) , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Cardinal Health, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2023 adjusted EPS of $1.32, beating the Zacks Consensus Estimate by 16.8%. Revenues of $51.47 billion outpaced the consensus mark by 2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health has a long-term estimated growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 6.4%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
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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Shockwave Medical's (SWAV) Q4 Earnings Top, Revenues Surge Y/Y
Shockwave Medical, Inc. (SWAV - Free Report) reported fourth-quarter 2022 earnings per share (EPS) of $3.71, which surpassed the Zacks Consensus Estimate of 99 cents by 275%. It had reported an EPS of 34 cents in the year-ago quarter.
Revenue Details
The company reported revenues of $144 million, which surged a whopping 71.1% from the prior-year quarter. The top line also surpassed the Zacks Consensus Estimate by 1.1%.
The company’s management stated that it continues to witness strength across the entire Shockwave franchise and geographies. The significant gain in revenues was driven by organic demand, the launch of M5+ catheter, addition of new accounts and appropriate reimbursement.
Internationally, the company’s sales were driven by strong momentum in France and the United Kingdom, and robust contribution from China. The company’s 2023 revenues are likely to be driven by robust demand for existing products, coupled with launch of C2+ coronary product in the United States, which was approved in December.
Q4 Highlights
During the quarter, Shockwave Medical received FDA clearance for its Shockwave C2+ Coronary IVL Catheter, a bit ahead of schedule. The company plans to launch the product in the second half of 2023.
In November 2022, Shockwave Medical announced that the final 1,373-patient cohort analysis from the Disrupt PAD III Observational Study demonstrated consistent Intravascular Lithotripsy (IVL) outcomes in complex and challenging lesions across multiple peripheral vessel beds.
In January 2023, Shockwave Medical announced its entry into a definitive agreement to acquire Neovasc Inc. The transaction is expected to be completed in the first half of 2023. The buyout will add its Reducer System to Shockwave Medical’s portfolio of products. This may aid the company in expanding its global footprint in the cardiovascular disease treatment space and solidifying its position worldwide.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
ShockWave Medical, Inc. price-consensus-eps-surprise-chart | ShockWave Medical, Inc. Quote
Margins
Gross profit in the reported quarter was $126.5 million, soaring 76.9% year over year. As a percentage of revenues, the gross margin in the quarter was 88%, up 400 basis points.
Sales and marketing expenses amounted to $43.4 million, up 30.7% from the prior-year quarter. Research and development expenses totaled $23.7 million, up 61.2% on a year-over-year basis.
Operating income totaled $42.4 million compared with the year-ago quarter’s $14 million.
Financial Position
The company exited the fourth quarter with cash, cash equivalents and investments of $304.5 million compared with $250.7 million in the previous quarter.
Total assets amounted to $646.1 million, compared with $475.8 million at the end of the third quarter.
2023 Revenue Outlook
For 2023, Shockwave Medical now expects revenues in the range of $660 million to $680 million, implying growth of 35-39% from the prior-year period. The Zacks Consensus Estimate for the same is pegged at $656 million.
Wrapping Up
Shockwave Medical ended the fourth quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company exhibited significant revenue growth in the fourth 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 2023 revenues.
However, an increase in operating expenses is a concern. Staffing issues adversely impacted procedure volumes in some centers during the fourth quarter, which are expected to gradually improve in 2023.
Zacks Rank
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. (CAH - Free Report) , McKesson Corporation (MCK - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Cardinal Health, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2023 adjusted EPS of $1.32, beating the Zacks Consensus Estimate by 16.8%. Revenues of $51.47 billion outpaced the consensus mark by 2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health has a long-term estimated growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 6.4%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
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%.