Back to top

Image: Shutterstock

InMode (INMD) to Post Q4 Earnings: What's in the Cards?

Read MoreHide Full Article

InMode Ltd. (INMD - Free Report) is set to report fourth-quarter and 2019 results on Feb 18, before market open.

In the last reported quarter, the company posted a positive earnings surprise of 44.83%. In the third quarter, it posted the first quarterly results as a public company since its IPO in August 2019.

Let’s take a look at how things have shaped up for the fourth quarter and 2019 results.

InMode Ltd. Price and EPS Surprise

 

InMode Ltd. Price and EPS Surprise

InMode Ltd. price-eps-surprise | InMode Ltd. Quote

Key Catalysts

InMode’s Evolve platform, which is the first hand-free platform with three treatment modality, has been well received by customers. Although it was launched only in the United States, the company confirmed that the product has performed well in the fourth quarter. Hence, InMode expects a revenue uptick on the platform’s robust performance.

The company has set up two fully-owned sales and marketing subsidiary in early October 2019, one each in India and Australia, as part of its global expansion strategy. InMode expects to have witnessed rise in global sales in the fourth quarter, banking on the strategy as it enables the company to sell products in its portfolio directly to intended people (doctors) and not through distributors.

On the regulatory front, InMode received Health Canada Certification for multiple new products in October 2019, which further expanded its presence in Canada. The certification included two clinically proven technologies — Morpheus8 and AccuTite, which have been widely recognized since then as the preferred choice of aesthetic solutions by physicians. We anticipate the company's Canadian operations to positively impact fourth-quarter results.

InMode is optimistic about the continued customer adoption of its brands, namely BodyTite, FaceTite, NeckTite, AccuTite and Morpheus8. Gains from the popularity of its brands, based on worldwide system sales, is expected to get reflected in fourth-quarter results in the form of a revenue uptick.

InMode’s Bipolar RF technology performed quite well in the third quarter, backed by rising customer adoption of the minimally invasive technology. This momentum is expected to have been maintained in the fourth quarter as well.

Q4 & 2019 Estimates

The Zacks Consensus Estimate for total revenues and earnings per share (EPS) for the fourth quarter are pegged at $42.6 million and 39 cents, respectively.

For the year, the Zacks Consensus Estimate for total revenues and EPS are pegged at $152 million and $1.55, respectively.

What Our Quantitative Model Predicts

Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. But this is not the case here as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter.

Earnings ESP: InMode has an Earnings ESP of 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.

DexCom, Inc. (DXCM - Free Report) currently has an Earnings ESP of +12.27% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tandem Diabetes Care, Inc. (TNDM - Free Report) has an Earnings ESP of +86.44%. It currently has a Zacks Rank #2.

Perrigo Company plc (PRGO - Free Report) has an Earnings ESP of +3.85%. It currently carries a Zacks Rank #2.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>

Published in