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IRADIMED (IRMD) Q4 Earnings Surpass Estimates, Margins Up

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IRADIMED CORPORATION. (IRMD - Free Report) reported fourth-quarter 2018 adjusted earnings per share (EPS) of 16 cents, up 60% year over year. This figure surpassed the Zacks Consensus Estimate by 23.1%. The reported EPS was 14 cents, as compared with the year-ago figure of 2 cents.

For the full year, adjusted EPS came in at 54 cents, marking a remarkable rise from 22 cents a year ago.

Revenue details

In the fourth quarter of 2018, revenues totaled $8.3 million, up 24.5% year over year. This figure, however, missed the Zacks Consensus Estimate by 10.7%. For the full year, the company registered revenues of $30.4 million, up 31.6% from the year-ago period.

Geographical and segmental details

IRADIMED registered international revenues of $1.6 million for the fourth quarter, up 14.3% year over year. Domestic revenues came in at $6.7 million, reflecting a rise of 26.4%.

iRadimed Corporation Price, Consensus and EPS Surprise

 

iRadimed Corporation Price, Consensus and EPS Surprise | iRadimed Corporation Quote

 

The company reports revenues through two operating segments viz. devices and disposables and services. Fourth-quarter revenues from the sale of devices came in at $5.9 million, up 25.5% year over year. The upside was driven by strong revenues from MRI-compatible patient vital monitors, which registered a count of $2.1 million, showing a huge 133.3% rise from the year-ago period. Revenues from the disposables and services segment in the fourth quarter were $2 million, up 17.6% year over year.

Margins

In the fourth quarter, gross profit came in at $6.4 million, reflecting an increase of 25.5% from the year-ago period. Gross margin expanded 69 basis points (bps) to 76.2%. In the quarter under review, operating profit increased 79.3% year over year to reach $1.8 million. Operating margin expanded 659 bps to 21.5%.

In the fourth quarter, sales and marketing expenses came in at $2.1 million, up 31.1% year over year. General and administrative expenses grossed $2.15 million, showing a meager drop of 0.3% year over year. Research and development expenses came in at $0.37 million, a rise of 5.2% from the year-ago period.

Cash Position

IRADIMED exited 2018 with cash and cash equivalent of $28 million, a significant rise of 55.6% from the end of 2017. For the year, net cash provided by operating activities was $7.4 million, compared with $3.4 million a year ago.

Guidance for 2019

The company has provided a financial guidance for 2019. Revenues for the full year are estimated in the range of $38.5-$39.5 million. Adjusted EPS for the full year is projected in the range of 69-73 cents.

The company has also provided the guidance for first-quarter 2019. Revenues are expected within $8.3-$8.5 million, whereas adjusted EPS is estimated in the range of 12-13 cents.

Our take

IRADIMED exited the fourth quarter of 2018 on a positive note. The company reported growth across all operating segments and geographic locations. The company is making solid progress with regard to product development. In 2018, it had significantly enhanced its next generation IV pump. It expects to release this device in early 2021. It has also made progress with regard to its magnetic detection device, the FMD, and is on track for a late 2019 launch.

On account of these factors, we are optimistic about IRADIMED’s growth potential.

Key Picks

A few top-ranked medical stocks that have reported quarterly results in the recently are Abbott Laboratories (ABT - Free Report) , AngioDynamics Inc. (ANGO - Free Report) and CONMED, Corp. (CNMD - Free Report) .

Abbott reported fourth-quarter 2018 adjusted EPS of 81 cents, in line with the Zacks Consensus Estimate. Revenues of $7.77 billion were below the Zacks Consensus Estimate of $7.79 billion. The stock has a Zacks Rank #2 (Buy).

AngioDynamics’ fiscal second-quarter adjusted EPS of 22 cents exceeded the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, beating the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CONMED delivered fourth-quarter adjusted EPS of 73 cents, in line with the Zacks Consensus Estimate. Revenues of $242.4 million beat the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.

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