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Shockwave Medical (SWAV) Q1 Earnings Beat, Revenues Rise Y/Y
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Shockwave Medical, Inc. (SWAV - Free Report) reported first-quarter 2024 earnings per share (EPS) of $1.44, which beat the Zacks Consensus Estimate of $1.04 by 38.46%. The company reported an EPS of $1.03 in the year-ago quarter.
Revenue Details
Revenues totaled $218.8 million, indicating an uptick of 36% from the prior-year period’s level. The top line also beat the Zacks Consensus Estimate by 5.66%. The growth was primarily driven by an increase in the purchase volume of products, both in the United States and abroad.
Business Highlights
In April 2024, Johnson & Johnson and Shockwave Medical announced that they have entered into a definitive agreement under which Johnson & Johnson will acquire all outstanding shares of Shockwave Medical for $335.00 per share in cash, corresponding to an enterprise value of approximately $13.1 billion including cash acquired. The transaction was approved by both companies’ boards of directors.
The closing of the transaction is expected to occur by mid-year 2024 subject to the receipt of Shockwave Medical’s shareholder approval, as well as the receipt of applicable regulatory approvals and other customary closing conditions.
Margins
Gross profit in the reported quarter was $190.6 million, up 36.1% year over year. As a percentage of revenues, the gross margin in the quarter was 87.1%, up 20 basis points year over year.
Sales and marketing expenses amounted to $74.5 million, up 37.9% from the prior-year quarter’s level. Research and development expenses totaled $44.5 million, up 64.9% on a year-over-year basis.
Operating income totaled $42.4 million, up 6.6% year over year.
Financial Position
Shockwave Medical exited the first quarter with cash, cash equivalents and investments of $1.03 billion compared with $990.6 million in the fourth quarter.
Total assets amounted to $1.64 billion compared with $1.57 billion at the end of the fourth quarter of 2023.
2024 Guidance Withdrawn
Given the proposed acquisition of Shockwave Medical by Johnson & Johnson, Shockwave Medical has withdrawn its full-year 2024 guidance, which was previously issued on Feb 15, 2024.
Wrapping Up
SWAV ended the first quarter on a positive note, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. The company exhibited significant revenue growth in the same quarter. Per the acquisition agreement between Johnson & Johnson and Shockwave Medical, the latter is likely to expand JNJ’s MedTech cardiovascular portfolio in the two highest growth-oriented segments of cardiovascular intervention —coronary artery disease and peripheral artery disease.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , Ecolab (ECL - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted EPS of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.
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Shockwave Medical (SWAV) Q1 Earnings Beat, Revenues Rise Y/Y
Shockwave Medical, Inc. (SWAV - Free Report) reported first-quarter 2024 earnings per share (EPS) of $1.44, which beat the Zacks Consensus Estimate of $1.04 by 38.46%. The company reported an EPS of $1.03 in the year-ago quarter.
Revenue Details
Revenues totaled $218.8 million, indicating an uptick of 36% from the prior-year period’s level. The top line also beat the Zacks Consensus Estimate by 5.66%. The growth was primarily driven by an increase in the purchase volume of products, both in the United States and abroad.
Business Highlights
In April 2024, Johnson & Johnson and Shockwave Medical announced that they have entered into a definitive agreement under which Johnson & Johnson will acquire all outstanding shares of Shockwave Medical for $335.00 per share in cash, corresponding to an enterprise value of approximately $13.1 billion including cash acquired. The transaction was approved by both companies’ boards of directors.
The closing of the transaction is expected to occur by mid-year 2024 subject to the receipt of Shockwave Medical’s shareholder approval, as well as the receipt of applicable regulatory approvals and other customary closing conditions.
Margins
Gross profit in the reported quarter was $190.6 million, up 36.1% year over year. As a percentage of revenues, the gross margin in the quarter was 87.1%, up 20 basis points year over year.
Sales and marketing expenses amounted to $74.5 million, up 37.9% from the prior-year quarter’s level. Research and development expenses totaled $44.5 million, up 64.9% on a year-over-year basis.
Operating income totaled $42.4 million, up 6.6% year over year.
Financial Position
Shockwave Medical exited the first quarter with cash, cash equivalents and investments of $1.03 billion compared with $990.6 million in the fourth quarter.
Total assets amounted to $1.64 billion compared with $1.57 billion at the end of the fourth quarter of 2023.
2024 Guidance Withdrawn
Given the proposed acquisition of Shockwave Medical by Johnson & Johnson, Shockwave Medical has withdrawn its full-year 2024 guidance, which was previously issued on Feb 15, 2024.
Wrapping Up
SWAV ended the first quarter on a positive note, wherein both earnings and revenues beat their respective Zacks Consensus Estimate. The company exhibited significant revenue growth in the same quarter. Per the acquisition agreement between Johnson & Johnson and Shockwave Medical, the latter is likely to expand JNJ’s MedTech cardiovascular portfolio in the two highest growth-oriented segments of cardiovascular intervention —coronary artery disease and peripheral artery disease.
ShockWave Medical, Inc. Price, Consensus and EPS Surprise
ShockWave Medical, Inc. price-consensus-eps-surprise-chart | ShockWave Medical, Inc. Quote
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 Align Technology, Inc. (ALGN - Free Report) , Ecolab (ECL - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted EPS of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.7%.
Ecolab’s shares have rallied 33.8% against the industry’s 9.3% decline in the past year.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.