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Inari Medical (NARI) Q1 Earnings Top, Revenues Rise Y/Y
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Inari Medical, Inc. (NARI - Free Report) reported first-quarter 2023 loss of 4 cents per share, which was 82.6% narrower than the Zacks Consensus Estimate of a loss of 23 cents. The company had reported an earnings per share (EPS) of 2 cents in the year-ago period.
Revenue Details
Revenues totaled $116.2 million for the reported quarter, up 33.9% from the prior-year quarter’s figure. The figure also increased 7.8% sequentially. The top line outpaced the Zacks Consensus Estimate by 5.2%. Product introductions, higher product adoption and continued U.S. commercial expansion contributed to the improvement.
Q1 Highlights
Inari Medical’s core business was driven by strong procedural growth across both its ClotTriever and FlowTriever product lines. The company derived 34% of its revenues from the sale of ClotTriever products and 66% from the sale of FlowTriever products during the first quarter of 2023.
On its first-quarter earnings call, NARI stated that it is progressing well with the launch of Protrieve and InThrill. Sales of both these products have increased sequentially. The company recorded continued adoption of FlowSaver — a device designed to be used with the FlowTriever System to reduce blood loss — in Europe. The product received approval for European markets in the last quarter.
Inari Medical is expanding its presence globally. The company’s International business generated revenues of $4.3 million, up 154% year over year and 30% sequentially. The top line was primarily driven by strong performance in Europe.
Margins
Gross profit in the reported quarter totaled $102.4 million, up 33.3% year over year. As a percentage of revenues, the gross margin was 88.2%, down 30 basis points. Addition of new products to the FlowTriever system drove cost of goods sold.
Research and development expenses amounted to $22.1 million, up 36.7% from the year-ago quarter’s level. Selling, general and administrative expenses totaled $85.7 million, up 34.5% on a year-over-year basis.
Operating loss came in at $5.3 million compared with $3.1 million in the year-ago quarter.
Financial Position
The company exited the first quarter with cash, cash equivalents and short-term investments of $328.4 million, up from $326.4 million on a sequential basis.
Inari Medical, Inc. Price, Consensus and EPS Surprise
For 2023, the company now expects revenues in the range of $478-$488 million, up from the previous guidance of $470-$480 million. The Zacks Consensus Estimate for the same is pegged at $476.1 million.
Our Take
Inari Medical exited the first quarter on a strong note, wherein both earnings and revenues beat the consensus mark. Apart from treating a large number of patients, the company made substantial progress across all its growth drivers. NARI’s plans to launch several products later this year buoy optimism.
However, contraction in gross margin and the incurrence of operating loss are concerning.
Zacks Rank and Stocks to Consider
Currently, Inari Medical carries a Zacks Rank #3 (Hold).
Intuitive Surgical reported first-quarter 2023 adjusted earnings per share (EPS) of $1.23, which beat the Zacks Consensus Estimate of $1.19. Revenues of $1.7 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 1.86%.
Hologic reported first-quarter 2023 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 20.5%. Revenues of $1.03 billion outpaced the consensus mark by 6.2%.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.32%.
Edwards Lifesciences reported first-quarter 2023 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion surpassed the Zacks Consensus Estimate by 4.7%.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 1.69%.
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Inari Medical (NARI) Q1 Earnings Top, Revenues Rise Y/Y
Inari Medical, Inc. (NARI - Free Report) reported first-quarter 2023 loss of 4 cents per share, which was 82.6% narrower than the Zacks Consensus Estimate of a loss of 23 cents. The company had reported an earnings per share (EPS) of 2 cents in the year-ago period.
Revenue Details
Revenues totaled $116.2 million for the reported quarter, up 33.9% from the prior-year quarter’s figure. The figure also increased 7.8% sequentially. The top line outpaced the Zacks Consensus Estimate by 5.2%. Product introductions, higher product adoption and continued U.S. commercial expansion contributed to the improvement.
Q1 Highlights
Inari Medical’s core business was driven by strong procedural growth across both its ClotTriever and FlowTriever product lines. The company derived 34% of its revenues from the sale of ClotTriever products and 66% from the sale of FlowTriever products during the first quarter of 2023.
On its first-quarter earnings call, NARI stated that it is progressing well with the launch of Protrieve and InThrill. Sales of both these products have increased sequentially. The company recorded continued adoption of FlowSaver — a device designed to be used with the FlowTriever System to reduce blood loss — in Europe. The product received approval for European markets in the last quarter.
Inari Medical is expanding its presence globally. The company’s International business generated revenues of $4.3 million, up 154% year over year and 30% sequentially. The top line was primarily driven by strong performance in Europe.
Margins
Gross profit in the reported quarter totaled $102.4 million, up 33.3% year over year. As a percentage of revenues, the gross margin was 88.2%, down 30 basis points. Addition of new products to the FlowTriever system drove cost of goods sold.
Research and development expenses amounted to $22.1 million, up 36.7% from the year-ago quarter’s level. Selling, general and administrative expenses totaled $85.7 million, up 34.5% on a year-over-year basis.
Operating loss came in at $5.3 million compared with $3.1 million in the year-ago quarter.
Financial Position
The company exited the first quarter with cash, cash equivalents and short-term investments of $328.4 million, up from $326.4 million on a sequential basis.
Inari Medical, Inc. Price, Consensus and EPS Surprise
Inari Medical, Inc. price-consensus-eps-surprise-chart | Inari Medical, Inc. Quote
2023 Revenue Guidance Revised
For 2023, the company now expects revenues in the range of $478-$488 million, up from the previous guidance of $470-$480 million. The Zacks Consensus Estimate for the same is pegged at $476.1 million.
Our Take
Inari Medical exited the first quarter on a strong note, wherein both earnings and revenues beat the consensus mark. Apart from treating a large number of patients, the company made substantial progress across all its growth drivers. NARI’s plans to launch several products later this year buoy optimism.
However, contraction in gross margin and the incurrence of operating loss are concerning.
Zacks Rank and Stocks to Consider
Currently, Inari Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced their quarterly results are Intuitive Surgical (ISRG - Free Report) , Hologic (HOLX - Free Report) and Edwards Lifesciences (EW - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical reported first-quarter 2023 adjusted earnings per share (EPS) of $1.23, which beat the Zacks Consensus Estimate of $1.19. Revenues of $1.7 billion outpaced the consensus mark by 6.9%.
Intuitive Surgical has a long-term estimated growth rate of 13%. ISRG’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average surprise being 1.86%.
Hologic reported first-quarter 2023 adjusted EPS of $1.06, which beat the Zacks Consensus Estimate by 20.5%. Revenues of $1.03 billion outpaced the consensus mark by 6.2%.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 27.32%.
Edwards Lifesciences reported first-quarter 2023 adjusted earnings of 62 cents per share, which beat the Zacks Consensus Estimate by 1.6%. Revenues of $1.46 billion surpassed the Zacks Consensus Estimate by 4.7%.
Edwards Lifesciences has a long-term estimated growth rate of 6.8%. EW’s earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 1.69%.