InMode Ltd. (Nasdaq: INMD) has announced preliminary results for the first quarter of 2022. Shares of the company declined 7.1% on Monday but were up 2% at the time of writing.
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The company provides innovative medical technologies. It also designs, develops, manufactures, and markets minimally invasive aesthetic medical products.
Preliminary Results
InMode has announced preliminary first-quarter revenues in the range of $85 million to $85.5 million. This compares favorably with the consensus estimate of $80.2 million. Also, it reflects a rise of 29.8% to 30.5% from the prior-year quarter.
Adjusted earnings are expected between $0.38 and $0.39 per share. The Street expects InMode to post earnings of $0.36 per share in the first quarter. The company had reported adjusted earnings of $0.69 per share in the first quarter of 2021.
The CEO of InMode, Moshe Mizrahy, said, “Despite pressures from new Covid-19 variants and supply chain challenges, we’re able to ensure a productive manufacturing facility and meet expected delivery times. The growing number of treatments in the U.S. and globally increased the sales of consumables, that consistently reach new records every quarter.”
Price Target
Following the news, Needham analyst Michael Matson and Robert W. Baird analyst Jeff Johnson maintained a Buy rating on InMode with a price target of $82 (155.9% upside potential from current levels).
“InMode has developed technologies that fill the “treatment gap” between non-invasive and invasive procedures. Its margins are among the highest in the med-tech sector and allow for strong free cash flow while 2021 guidance and consensus estimates appear conservative, in our view. InMode’s shares are attractively valued in our view considering its growth potential,” Matson said
Consensus among analysts is a Strong Buy based on three unanimous Buys. InMode’s average price forecast of $84.67 implies upside potential of 164.3% to current levels. Shares of the company have gained 22.6% over the past year.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in InMode is currently Very Positive, as the cumulative change in holdings across all six hedge funds that were active in the last quarter was an increase of 122,100 shares.
Conclusion
Despite lingering supply chain issues, InMode has been able to project top-line growth, which seems encouraging. Given the bullish perspective of analysts and the confidence of hedge funds, we can expect some upside potential in the near term.
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