Inari Medical (NARI) Q2 Earnings Top, Revenues Rise Y/Y
Inari Medical, Inc. NARI reported second-quarter 2023 earnings per share (EPS) of 4 cents, which beat the Zacks Consensus Estimate of a loss of 14 cents per share. The company had reported a loss of 19 cents per share in the year-ago period.
Revenue Details
Revenues totaled $119 million, up 28.3% from the prior-year quarter’s figure. The top line outpaced the Zacks Consensus Estimate by 2.3%. Product introductions, higher product adoption and continued U.S. commercial expansion contributed to the improvement.
Q2 Highlights
Inari Medical’s core business was driven by strong procedural growth across both its ClotTriever and FlowTriever product lines. The company derived 34% of its revenues from the sale of ClotTriever products and 66% from the sale of FlowTriever products during the second quarter.
NARI continues to progress well with the launch of Protrieve and InThrill. The company recorded continued adoption of FlowSaver — a device designed to be used with the FlowTriever System to reduce blood loss — in Europe. During the reported quarter, NARI launched two new products — RevCore and T16 Curve — both targeting patients with venous thromboembolism.
The company is expanding its presence globally. Its International business generated revenues of $5.2 million, up 187% year over year and 21% sequentially. The top line was primarily driven by strong performance in Europe.
Margins
Gross profit in the quarter totaled $105.2 million, up 27.7% year over year. As a percentage of revenues, the gross margin was 88.4%, down 40 basis points. Addition of new products to the commercial portfolio drove cost of goods sold.
Research and development expenses amounted to $21.1 million, up 13.5% from the year-ago quarter’s level. Selling, general and administrative expenses totaled $85.6 million, up 17% on a year-over-year basis.
Operating loss amounted to $1.5 million compared with $9.3 million in the year-ago quarter.
Financial Position
The company exited the second quarter with cash, cash equivalents and short-term investments of $337.5 million, up from $328.4 million in the previous quarter.
2023 Revenue Guidance Revised
For 2023, the company now expects revenues in the range of $482-$492 million, up from the previous guidance of $478-$488 million. The Zacks Consensus Estimate for the same is pegged at $483.8 million.
Inari Medical, Inc. Price, Consensus and EPS Surprise
Inari Medical, Inc. price-consensus-eps-surprise-chart | Inari Medical, Inc. Quote
Our Take
Inari Medical exited the second quarter on a strong note, wherein both earnings and revenues beat their respective consensus mark. Apart from treating a large number of patients, the company made substantial progress across all its growth drivers. NARI’s plans to launch several products later this year buoy optimism.
However, contraction in gross margin and the incurrence of operating loss are concerning.
Zacks Rank and Other Stocks to Consider
Currently, Inari Medical sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader medical space that have announced quarterly results are Abbott Laboratories ABT, Elevance Health, Inc. ELV and Intuitive Surgical, Inc. ISRG.
Abbott, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2023 adjusted EPS of $1.08, which beat the Zacks Consensus Estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $9.98 billion outpaced the consensus mark by 2.9%.
Abbott has a long-term estimated growth rate of 5.1%. ABT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.4%.
Elevance Health reported second-quarter 2023 adjusted EPS of $9.04, which beat the Zacks Consensus Estimate by 2.5%. Revenues of $43.38 billion surpassed the Zacks Consensus Estimate by 4.5%. The company currently carries a Zacks Rank #2.
ELV has a long-term estimated growth rate of 12.1%. Its earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.8%.
Intuitive Surgical reported second-quarter 2023 adjusted EPS of $1.42, which beat the Zacks Consensus Estimate by 7.6%. Revenues of $1.76 billion surpassed the consensus mark by 1.4%. The company currently carries a Zacks Rank #2.
ISRG has a long-term estimated growth rate of 14.5%. Its earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 4.2%.
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