What's in Store for Shockwave Medical (SWAV) in Q3 Earnings?
Shockwave Medical SWAV is scheduled to release third-quarter 2022 results on Nov 7, after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 58.14%. Its earnings beat estimates in all the trailing four quarters, the average surprise being 180.14%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter 2022 revenues is pegged at $125.85 million, indicating an improvement of 93.1% from the prior-year quarter. The consensus mark for earnings stands at 68 cents, suggesting growth of 1260.00% from the year-ago reported figure.
Factors to Note
Shockwave Medical’s top line grew tremendously in the first half of 2022 on the back of robust demand for its Intravascular Lithotripsy (IVL) system across categories and geographies. The introduction of its coronary product — Shockwave C2 in the United States last year has accelerated top-line growth for the company. These trends are likely to be reflected in the company’s third-quarter results. Our model suggests third-quarter revenues for this segment to be $125.7 million.
The company received approval for the Shockwave C2 Coronary IVL Catheter in Japan during the first quarter. In the same quarter, the company announced the global availability and introduction of the Shockwave M5+ peripheral IVL catheter, post the receipt of both the CE mark and U.S. FDA clearance. During the second quarter, the company received regulatory approval to market and sell the Shockwave IVL System in China. These developments are likely to have brought additional revenues for the company during the third quarter.
Shockwave Medical’s management is optimistic about the continued clinical acceptance and penetration of IVL, which led to a higher outlook for revenues in 2022 on the second-quarter earnings call. The company raised its revenue guidance from the band of $435-$455 million to the range of $465 million to $475 million for full year 2022, indicating growth of 96-100% over the prior-year period.
ShockWave Medical, Inc. Price and Consensus
ShockWave Medical, Inc. price-consensus-chart | ShockWave Medical, Inc. Quote
However, the company is likely to have incurred higher operating expenses during the third quarter as a result of new product launches and expansion into new geographies. The company has also been conducting studies on its IVL systems to expand its targeted patient population with new categories of devices.
What Our Quantitative Model Suggests
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see.
Earnings ESP: Shockwave Medical 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 carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle:
National Vision Holdings, Inc. EYE has an Earnings ESP of +2.56% and a Zacks Rank of 2. EYE has an estimated long-term growth rate of 22.2%.
National Vision’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 246.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo MASI has an Earnings ESP of +4.35% and is a Zacks #3 Rank stock. MASI has an earnings yield of 3.53% against the industry’s (9.44%).
Masimo’searnings surpassed estimates in all the trailing four quarters, with the average surprise being 6.96%.
GoodRx Holdings, Inc. GDRX has an Earnings ESP of +21.62% and carries a Zacks Rank of 2 at present. GDRX has an estimated long-term growth rate of 16.4%.
GoodRx’searnings surpassed estimates in three of the trailing four quarters and missed the same in one, with the average surprise being 19.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Masimo Corporation (MASI) : Free Stock Analysis Report
National Vision Holdings, Inc. (EYE) : Free Stock Analysis Report
ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report
GoodRx Holdings, Inc. (GDRX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
