InMode (INMD) to Post Q3 Earnings: What's in the Cards?
InMode INMD is scheduled to report third-quarter 2023 results on Nov 2, before market open.
In the last reported quarter, the company’s adjusted earnings per share of 72 cents surpassed the Zacks Consensus Estimate by 2.9%.
Let’s take a look at how things have shaped up prior to this announcement.
Factors to Note
Similar to the last reported quarter, In Mode is likely to have registered strong growth backed by robust disposable sales. In an update on July 27, the company noted that it had recorded sales of disposables in the second quarter. Sales from its platforms reached over 1,600 units and the number of disposables sold totaled over 270,000. This trend should have been reflected through the third-quarter performance, benefiting the top line.
During the second quarter, INMD established two new subsidiaries, one in Japan and one in Germany. We expect that this ongoing global expansion is likely to have benefited InMode’s third-quarter revenues.
In the third quarter, the company is expected to report strong consumable and service revenues, banking on a strong indication that its platforms are being used more frequently, signifying continued demand and increased brand recognition. In vision, the non-surgical ophthalmic platform is gaining significant traction in North America. The company plans to continue hiring product-specific sales reps to expand penetration into the ophthalmology market. We believe these developments to have contributed significantly to the company’s revenues in the to-be-reported quarter.
InMode Ltd. Price and EPS Surprise
InMode Ltd. price-eps-surprise | InMode Ltd. Quote
The Morpheus8 platform is expected to have gained traction and benefited from the company’s brand ambassadors, strong market awareness and positive patient results.
Overall, a strong commercial performance in the third quarter might have been largely dented by a challenging macroeconomic environment and currency headwinds.
Q3 Estimates
The Zacks Consensus Estimate for the company’s third-quarter 2023 revenues is pegged at $123 million, suggesting a 1.5% year-over-year rise.
The Zacks Consensus Estimate for the company’s third-quarter 2023 earnings per share is 60 cents, indicating a rise of 9.1% from the year-ago reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here, as you can see:
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
Stocks Worth a Look
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this quarter.
Insulet PODD has an Earnings ESP of +6.61% and a Zacks Rank #2. The company will release third-quarter 2023 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Insulet has a long-term expected earnings growth rate of 35.7%. PODD has an earnings yield of 1.13% against the industry’s -2.58%.
Acadia Pharmaceuticals ACAD has an Earnings ESP of +6.76% and a Zacks Rank #2. The company is scheduled to release third-quarter 2023 results on Nov 2.
ACAD has an expected long-term earnings growth rate of 43.4%. In the trailing four quarters, the company delivered an average earnings surprise of 20.33%.
Dentsply Sirona XRAY currently has an Earnings ESP of +1.85% and a Zacks Rank #2. The company is scheduled to release its third-quarter 2023 results on Nov 2.
Dentsply Sirona has an expected earnings growth rate of 14.7% for the next year. XRAY’s earnings beat estimates in three of the trailing four quarters, the average surprise being 12.51%.
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DENTSPLY SIRONA Inc. (XRAY) : Free Stock Analysis Report
Insulet Corporation (PODD) : Free Stock Analysis Report
ACADIA Pharmaceuticals Inc. (ACAD) : Free Stock Analysis Report
InMode Ltd. (INMD) : Free Stock Analysis Report
