iCAD Gains Over 9% On Strong 1Q Revenue Projection

Shares of iCAD were up 9.3% in Monday’s extended trading session after the cancer detection and therapy solutions provider announced preliminary 1Q revenues that topped the Street’s estimates. The company is set to report its 1Q results in late May.

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iCAD (ICAD) anticipates 1Q revenue to exceed $8.1 million compared to analysts’ expectations of $7.89 million. The company also projected unaudited cash and cash equivalents of approximately $46.9 million as of March 31, 2021, including the IPO proceeds of about $25 million.

The company’s CEO Michael Klein said, “Our strong results were driven by growth in both AI [artificial intelligence] Detection revenue, due to continued market penetration for ProFound AI and ProFound AI Risk, and Xoft Therapy revenues.”

Along with preliminary revenue numbers, iCAD also announced the departure of its CFO, R. Scott Areglado. (See iCAD stock analysis on TipRanks)

Following the announcement, BTIG analyst Marie Thibault maintained a Buy rating and a price target of $25 (25.6% upside potential). In a note to investors, the analyst said, “A new CFO will be joining ICAD as the company begins to layer on new business models, including subscription and pay-per-patient models, for its Detection products.” She added, “With a solid Q1 performance in hand, we remain bullish on ICAD.”

Overall, the Street has a Strong Buy consensus rating on the stock based on 8 unanimous Buys. The average analyst price target of $22.13 implies upside potential of about 11.2% to current levels. Shares have skyrocketed by 170.4% in one year.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on ICAD, with 4.1% of investors increasing their exposure to ICAD stock over the last 7 days.