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Shockwave Medical (SWAV) Q1 Earnings Top, Revenues Surge Y/Y
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Shockwave Medical, Inc. (SWAV - Free Report) reported first-quarter 2023 earnings per share (EPS) of $1.03, which outpaced the Zacks Consensus Estimate of 81 cents by 27.2%. The company reported an EPS of 39 cents in the year-ago quarter.
Revenue Details
The company reported revenues of $161.1 million, which surged a massive 72% from the prior-year period’s level. The top line also beat the Zacks Consensus Estimate by 10.6%.
Management stated that the strong growth in top line was driven by double-digit growth in the U.S. coronary, U.S. peripheral and International market. Key revenue drivers include strong uptake of M5+ catheter, addition of new accounts and appropriate reimbursement.
Internationally, SWAV’s sales were boosted by strong momentum in Germany and Japan, and robust contribution from China.
The company’s 2023 revenues are likely to be driven by strong demand for existing products, as well as the launch of Shockwave L6 Peripheral IVL Catheter in the United States during the first quarter.
Q1 Highlights
During the quarter, Shockwave Medical received FDA clearance for its Shockwave L6 Peripheral IVL Catheter. The company completed the acquisition of Neovasc Inc in April. The buyout will have the latter’s Reducer System in SWAV’s portfolio of products. This may aid the company to expand its global footprint in the cardiovascular disease treatment space and solidify its position worldwide.
Margins
Gross profit in the reported quarter totaled $140 million, soaring 73.5% year over year. As a percentage of revenues, the gross margin in the quarter was 87%, up 100 basis points (bps).
Sales and marketing expenses amounted to $54 million, up 50.2% from the prior-year quarter’s level. Research and development expenses came in at $27 million, up 58.5% on a year-over-year basis.
Operating income totaled $39.8 million compared with the year-ago quarter’s $15.4 million.
Financial Position
Shockwave Medical exited the first quarter with cash, cash equivalents and investments of $416.9 million compared with $304.5 million in the previous quarter.
Total assets amounted to $783.2 million compared with $646.1 million at the end of the fourth quarter of 2022.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
For 2023, Shockwave Medical now expects revenues in the band of $700-$720 million compared with the previous guided range of $660-680 million. The revised projected top line implies growth of 43-47% from the prior-year period’s level. The Zacks Consensus Estimate for the same is pegged at $670.9 million.
Wrapping Up
Shockwave Medical ended the first quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company exhibited significant revenue growth in the same quarter. Expansion in gross margin is also encouraging.
Management is optimistic about the continued clinical acceptance and penetration of IVL. This is due to the technology’s 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. This situation is expected to improve gradually in 2023.
Zacks Rank and Stocks to Consider
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AmerisourceBergen Corporation , Merit Medical Systems, Inc. (MMSI - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
The company reported fiscal second-quarter 2023 adjusted EPS of $3.50, which beat the Zacks Consensus Estimate by 6.4%. Revenues of $63.46 billion outpaced the consensus mark by 4.4%.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.1%.
Merit Medical reported first-quarter 2023 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 16.4%. Revenues of $297.6 million surpassed the consensus mark by 5.9%. The company currently carries a Zacks Rank #2.
Merit Medical has a long-term estimated growth rate of 11%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.2%.
Cardinal Health reported fiscal third-quarter 2023 adjusted EPS of $1.74, which beat the Zacks Consensus Estimate by 17.6%. Revenues of $50.49 billion surpassed the consensus mark by 1.7%. The company carries a Zacks Rank #2 at present.
Cardinal Health has a long-term estimated growth rate of 11.6%. CAH’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 12.3%.
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Shockwave Medical (SWAV) Q1 Earnings Top, Revenues Surge Y/Y
Shockwave Medical, Inc. (SWAV - Free Report) reported first-quarter 2023 earnings per share (EPS) of $1.03, which outpaced the Zacks Consensus Estimate of 81 cents by 27.2%. The company reported an EPS of 39 cents in the year-ago quarter.
Revenue Details
The company reported revenues of $161.1 million, which surged a massive 72% from the prior-year period’s level. The top line also beat the Zacks Consensus Estimate by 10.6%.
Management stated that the strong growth in top line was driven by double-digit growth in the U.S. coronary, U.S. peripheral and International market. Key revenue drivers include strong uptake of M5+ catheter, addition of new accounts and appropriate reimbursement.
Internationally, SWAV’s sales were boosted by strong momentum in Germany and Japan, and robust contribution from China.
The company’s 2023 revenues are likely to be driven by strong demand for existing products, as well as the launch of Shockwave L6 Peripheral IVL Catheter in the United States during the first quarter.
Q1 Highlights
During the quarter, Shockwave Medical received FDA clearance for its Shockwave L6 Peripheral IVL Catheter. The company completed the acquisition of Neovasc Inc in April. The buyout will have the latter’s Reducer System in SWAV’s portfolio of products. This may aid the company to expand its global footprint in the cardiovascular disease treatment space and solidify its position worldwide.
Margins
Gross profit in the reported quarter totaled $140 million, soaring 73.5% year over year. As a percentage of revenues, the gross margin in the quarter was 87%, up 100 basis points (bps).
Sales and marketing expenses amounted to $54 million, up 50.2% from the prior-year quarter’s level. Research and development expenses came in at $27 million, up 58.5% on a year-over-year basis.
Operating income totaled $39.8 million compared with the year-ago quarter’s $15.4 million.
Financial Position
Shockwave Medical exited the first quarter with cash, cash equivalents and investments of $416.9 million compared with $304.5 million in the previous quarter.
Total assets amounted to $783.2 million compared with $646.1 million at the end of the fourth quarter of 2022.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
ShockWave Medical, Inc. price-consensus-eps-surprise-chart | ShockWave Medical, Inc. Quote
2023 Revenue Outlook
For 2023, Shockwave Medical now expects revenues in the band of $700-$720 million compared with the previous guided range of $660-680 million. The revised projected top line implies growth of 43-47% from the prior-year period’s level. The Zacks Consensus Estimate for the same is pegged at $670.9 million.
Wrapping Up
Shockwave Medical ended the first quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company exhibited significant revenue growth in the same quarter. Expansion in gross margin is also encouraging.
Management is optimistic about the continued clinical acceptance and penetration of IVL. This is due to the technology’s 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. This situation is expected to improve gradually in 2023.
Zacks Rank and Stocks to Consider
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AmerisourceBergen Corporation , Merit Medical Systems, Inc. (MMSI - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .
AmerisourceBergen carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company reported fiscal second-quarter 2023 adjusted EPS of $3.50, which beat the Zacks Consensus Estimate by 6.4%. Revenues of $63.46 billion outpaced the consensus mark by 4.4%.
AmerisourceBergen has a long-term estimated growth rate of 8.7%. ABC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.1%.
Merit Medical reported first-quarter 2023 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 16.4%. Revenues of $297.6 million surpassed the consensus mark by 5.9%. The company currently carries a Zacks Rank #2.
Merit Medical has a long-term estimated growth rate of 11%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.2%.
Cardinal Health reported fiscal third-quarter 2023 adjusted EPS of $1.74, which beat the Zacks Consensus Estimate by 17.6%. Revenues of $50.49 billion surpassed the consensus mark by 1.7%. The company carries a Zacks Rank #2 at present.
Cardinal Health has a long-term estimated growth rate of 11.6%. CAH’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 12.3%.