Shockwave Medical (SWAV) Beats on Q1 Earnings & Revenues

Shockwave Medical, Inc. SWAV reported first-quarter 2022 adjusted earnings per share (EPS) of 39 cents, which surpassed the Zacks Consensus Estimate of 19 cents by 105.3%. It had reported a loss of 68 cents in the year-ago quarter.

Revenue Details

The company reported revenues of $93.6 million, which surged a whopping 194% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 5.7%.

The introduction of the coronary product — Shockwave C2 — in the United States in February 2021, as well as sustained recovery from the pandemic-induced impact and higher adoption of Shockwave products, contributed to the improvement.

Q1 Highlights

During the quarter, the company received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan.

ShockWave Medical, Inc. Price, Consensus and EPS Surprise

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

Apart from this, the company announced the global availability and introduction of the Shockwave M5+ peripheral IVL catheter post the receipt of both CE mark and U.S. FDA clearance.

Margins

Gross profit in the reported quarter was $80.7 million, soaring 236.3% year over year. As a percentage of revenues, gross margin in the quarter was 86.2%, up 1090 basis points (bps).

Sales and marketing expenses amounted to $35.9 million, up 49.9% from the prior-year quarter. Research and development expenses totaled $17 million, up 65.6% on a year-over-year basis.

Operating income totaled $15.4 million against the year-ago quarter’s operating loss of $17.5 million.

Financial Position

The company exited the first quarter with cash, cash equivalents and investments of $201.1 million, compared with $200.9 million in the previous quarter.

Total assets amounted to $372.5 million, compared with $345.7 million at the end of the fourth quarter.

2022 Revenue Outlook

For 2022, Shockwave Medical expects revenues in the range of $435 million to $455 million (up from the previously guided band of $405-$425 million), reflecting growth of 83-92% over the prior-year period.

Wrapping Up

Shockwave Medical ended the first quarter on a strong note, wherein both earnings and revenues beat the consensus mark. The company exhibited significant revenue growth in the first quarter. Expansion in gross margin is encouraging.

Management is optimistic about the continued clinical acceptance and penetration of IVL, as demonstrated by its strong results in the quarter under review.

However, an increase in operating expenses remains a concern.

Zacks Rank

Currently, Shockwave Medical carries a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. OMCL, UnitedHealth Group Incorporated UNH and Alkermes plc ALKS.

Omnicell, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 16.9%. Revenues of $318.8 million outpaced the consensus mark by 0.7%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Omnicell has an estimated long-term growth rate of 16%. OMCL's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 13.4%.

UnitedHealth, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.

UnitedHealth has an estimated long-term growth rate of 14.8%. UNH's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.

Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which beat the Zacks Consensus Estimate of a penny. First-quarter revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.

Alkermes has an estimated long-term growth rate of 25.1%. ALKS' earnings surpassed estimates in each of the trailing four quarters, the average surprise being 350.5%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.