A month has gone by since the last earnings report for Inari Medical, Inc. (
NARI Quick Quote NARI - Free Report) . Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Inari Medical, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Inari Medical Q1 Earnings Top, Revenues Rise Y/Y
Inari Medical 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.
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.
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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 23.08% due to these changes.
At this time, Inari Medical, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Inari Medical, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Inari Medical, Inc. is part of the Zacks Medical - Instruments industry. Over the past month, Pacific Biosciences of California (
PACB Quick Quote PACB - Free Report) , a stock from the same industry, has gained 8.1%. The company reported its results for the quarter ended March 2023 more than a month ago.
Pacific Biosciences reported revenues of $38.9 million in the last reported quarter, representing a year-over-year change of +17.3%. EPS of -$0.31 for the same period compares with -$0.37 a year ago.
For the current quarter, Pacific Biosciences is expected to post a loss of $0.34 per share, indicating no change from the year-ago quarter. The Zacks Consensus Estimate has changed -7.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pacific Biosciences. Also, the stock has a VGM Score of F.