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Inari Medical (NARI) Q2 Earnings Lag, Revenues Top Estimates

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Inari Medical, Inc. NARI reported second-quarter 2021 adjusted earnings per share (EPS) of 7 cents, which missed the Zacks Consensus Estimate of 9 cents by 22.2%. The company reported a loss of 16 cents per share in the year-ago period.

GAAP EPS was 8 cents per share, against the year-ago quarter’s loss of 16 cents.

Revenue Details

The company reported revenues of $63.5 million, which skyrocketed 149.9% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 5.5%.

Q2 Highlights

The company treated a record number of patients, which boosted revenues in the quarter under review, thereby significantly expanding its commercial footprint.

Inari Medical announced the FDA clearance of FlowSaver, which will aid in bloodless thrombectomy through utilizing Triever Catheters.

Inari Medical, Inc. Price, Consensus and EPS Surprise

Inari Medical, Inc. Price, Consensus and EPS Surprise
Inari Medical, Inc. Price, Consensus and EPS Surprise

Inari Medical, Inc. price-consensus-eps-surprise-chart | Inari Medical, Inc. Quote

The company put forth interim results of the CLOUT DVT registry at New Cardiovascular Horizons, which confirmed best in class safety, clot removal and clinical results with respect to patients treated with ClotTriever.

Margins

Gross profit in the reported quarter was $58.6 million, up 167.7% year over year. As a percentage of revenues, gross margin in the quarter was 92.4%, up 610 basis points (bps).

Research and development expenses were $11.6 million, up 220.6% from the year-ago quarter, while selling, general and administrative expenses amounted to $42.9 million, up 127.2% on a year-over-year basis.

Operating income totaled $4.1 million against the year-ago quarter’s loss of $0.6 million.

Financial Position

The company exited the second quarter with cash, cash equivalents and short-term investments of $91.3 million, down from $174.1 million on a sequential basis.

Cumulative net cash provided by operating activities at the end of the second quarter was $16.1 million, against net cash used in operating activities worth $1.8 million in the prior-year quarter.

2021 Revenue Outlook Raised

In spite of the continued uncertainties and challenges in its operating environment stemming from the COVID-19 pandemic, the company has updated its financial outlook.

For 2021, revenues is currently projected to be $250-$255 million (up from the prior range of $240-$250 million). The Zacks Consensus Estimate for the same is pegged at $248.6 million.

Conclusion

Inari Medical exited the second quarter on a mixed note, wherein earnings missed the Zacks Consensus Estimate, while revenues beat the same. The company reported an improvement in revenues in the quarter under review. It witnessed an expansion in its gross margin in the quarter under review. Per management, the robust second-quarter performance reflects the company’s key objective to treat and transform the lives of its patients. Raised revenue outlook for 2021 is encouraging.

However, heavy dependency on the broad adoption of its products remains a concern.

Zacks Rank

Currently, Inari Medical carries a Zacks Rank of 3 (Hold).

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Encompass Health Corporation EHC, West Pharmaceutical Services, Inc. WST and Bio-Rad Laboratories, Inc. BIO. While West Pharmaceutical sports a Zacks Rank #1 (Strong Buy), both Encompass Health and Bio-Rad Laboratories carry Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.

Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.

Bio-Rad reported second-quarter 2021 adjusted EPS of $3.54, surpassing the Zacks Consensus Estimate by 86.3%. Revenues of $715.9 million beat the Zacks Consensus Estimate by 17.3%.


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