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Inari Medical, Inc. (NARI) Up 17.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Inari Medical, Inc. (NARI - Free Report) . Shares have added about 17.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Inari Medical, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Inari Medical Q3 Earnings and Revenues Beat Estimates
Inari Medical delivered earnings per share (EPS) of 5 cents in the third quarter of 2023 against the year-ago period’s loss of 19 cents per share. However, the figure surpassed the Zacks Consensus Estimate of a breakeven EPS.
Revenues in Detail
Inari Medical registered revenues of $126.4 million in the third quarter, up 31.4% year over year. The figure surpassed the Zacks Consensus Estimate by 3.6%.
Q3 Highlights
On the third quarter earnings call, Inari Medical’s management confirmed that 68% of its revenues were derived from the sale of FlowTriever Systems and 32% from the sale of ClotTriever and other systems.
On the same call, management also continued to make progress across the six products that are in full market release in the second half of 2023. Three of these products, REVCORE, InThrill and ProTrieve, add direct incremental revenue opportunities. Management also confirmed gaining good initial traction and is receiving excellent clinical feedback across all three products.
Per management, Inari Medical witnessed another quarter of record case and revenue production outside of the United States. Its performance was driven primarily by increased adoption in Western Europe, complemented by solid case growth in its early-stage markets in Latin America, Canada and Asia-Pacific. The company continues to make good progress in both China and Japan and anticipates beginning to treat patients in both these markets in 2024. Management expects its international business could represent greater than 20% of total revenues over time on the back of unmet needs.
During the reported quarter, NARI launched two new products — RevCore and T16 Curve catheter — both targeting patients with venous thromboembolism.
Margin Trend
In the quarter under review, Inari Medical’s gross profit improved 31.4% to $111.9 million. The gross margin expanded 4 basis points (bps) to 88.5%.
We had projected 86.2% of gross margin for the third quarter.
Selling, general and administrative expenses rose 16.4% to $88.3 million. Research and development expenses increased 12.5% year over year to $21.5 million. The operating expenses of $109.8 million increased 15.6% year over year.
The operating profit totaled $2.1 million against the operating loss of $9.8 million in the year-ago period.
Financial Position
Inari Medical exited third-quarter 2023 with cash and cash equivalents and short-term investments of $351.3 million compared with $337.5 million at the end of the second quarter.
Cumulative net cash provided by operating activities at the end of third-quarter 2023 was $23.7 million compared with cumulative net cash used in operating activities of $25.2 million a year ago.
Guidance
Inari Medical has raised its financial outlook for the full year 2023.
For the full year, the company now expects revenues to be $490 million-$493 million, up from the prior-year outlook of $482 million-$492 million. The Zacks Consensus Estimate stands at $488.9 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -27.78% due to these changes.
VGM Scores
At this time, Inari Medical, Inc. has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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, Intuitive Surgical, Inc. (ISRG - Free Report) , a stock from the same industry, has gained 11.9%. The company reported its results for the quarter ended September 2023 more than a month ago.
Intuitive Surgical, Inc. reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +12%. EPS of $1.46 for the same period compares with $1.19 a year ago.
Intuitive Surgical, Inc. is expected to post earnings of $1.47 per share for the current quarter, representing a year-over-year change of +19.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Intuitive Surgical, Inc. Also, the stock has a VGM Score of D.
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Inari Medical, Inc. (NARI) Up 17.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Inari Medical, Inc. (NARI - Free Report) . Shares have added about 17.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Inari Medical, Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Inari Medical Q3 Earnings and Revenues Beat Estimates
Inari Medical delivered earnings per share (EPS) of 5 cents in the third quarter of 2023 against the year-ago period’s loss of 19 cents per share. However, the figure surpassed the Zacks Consensus Estimate of a breakeven EPS.
Revenues in Detail
Inari Medical registered revenues of $126.4 million in the third quarter, up 31.4% year over year. The figure surpassed the Zacks Consensus Estimate by 3.6%.
Q3 Highlights
On the third quarter earnings call, Inari Medical’s management confirmed that 68% of its revenues were derived from the sale of FlowTriever Systems and 32% from the sale of ClotTriever and other systems.
On the same call, management also continued to make progress across the six products that are in full market release in the second half of 2023. Three of these products, REVCORE, InThrill and ProTrieve, add direct incremental revenue opportunities. Management also confirmed gaining good initial traction and is receiving excellent clinical feedback across all three products.
Per management, Inari Medical witnessed another quarter of record case and revenue production outside of the United States. Its performance was driven primarily by increased adoption in Western Europe, complemented by solid case growth in its early-stage markets in Latin America, Canada and Asia-Pacific. The company continues to make good progress in both China and Japan and anticipates beginning to treat patients in both these markets in 2024. Management expects its international business could represent greater than 20% of total revenues over time on the back of unmet needs.
During the reported quarter, NARI launched two new products — RevCore and T16 Curve catheter — both targeting patients with venous thromboembolism.
Margin Trend
In the quarter under review, Inari Medical’s gross profit improved 31.4% to $111.9 million. The gross margin expanded 4 basis points (bps) to 88.5%.
We had projected 86.2% of gross margin for the third quarter.
Selling, general and administrative expenses rose 16.4% to $88.3 million. Research and development expenses increased 12.5% year over year to $21.5 million. The operating expenses of $109.8 million increased 15.6% year over year.
The operating profit totaled $2.1 million against the operating loss of $9.8 million in the year-ago period.
Financial Position
Inari Medical exited third-quarter 2023 with cash and cash equivalents and short-term investments of $351.3 million compared with $337.5 million at the end of the second quarter.
Cumulative net cash provided by operating activities at the end of third-quarter 2023 was $23.7 million compared with cumulative net cash used in operating activities of $25.2 million a year ago.
Guidance
Inari Medical has raised its financial outlook for the full year 2023.
For the full year, the company now expects revenues to be $490 million-$493 million, up from the prior-year outlook of $482 million-$492 million. The Zacks Consensus Estimate stands at $488.9 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -27.78% due to these changes.
VGM Scores
At this time, Inari Medical, Inc. has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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, Intuitive Surgical, Inc. (ISRG - Free Report) , a stock from the same industry, has gained 11.9%. The company reported its results for the quarter ended September 2023 more than a month ago.
Intuitive Surgical, Inc. reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +12%. EPS of $1.46 for the same period compares with $1.19 a year ago.
Intuitive Surgical, Inc. is expected to post earnings of $1.47 per share for the current quarter, representing a year-over-year change of +19.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Intuitive Surgical, Inc. Also, the stock has a VGM Score of D.