InMode preannounced second-quarter metrics that were better than expected on Wednesday, pushing INMD stock into a breakout.
For the June quarter, the medical aesthetics company says it expects to earn 70-71 cents a share, excluding some items, on $135.7 million to $135.9 million in sales.
Both measures are well above Wall Street forecasts for 64 cents and $130.3 million, Needham analyst Mike Matson said in a note to clients. Earnings would grow 19%-20% year over year, while sales are jumping 20%.
But there's a caveat facing INMD stock. The announcement shows InMode's earnings beats are becoming less bullish, Matson said.
"InMode beat (analyst estimates for) revenue by 4.2% vs. its average 6.7% beat in 2022 and 10.2% beat in 2021," he said. "And it beat (analyst estimates for) EPS by 10.2% vs. its average 13.7% beat in 2022 and 17.2% beat in 2021."
On today's stock market, INMD stock jumped 11% to close at 45.22. Shares broke out of a consolidation with a buy point at 41.84, according to MarketSmith.com.
INMD Stock: Raised Sales Guidance
In addition to the strong preannouncement, InMode also raised its sales outlook for the year. The company now expects $530 million to $540 million in sales. The low end of that range came in a hair above analyst forecasts for $529.9 million, Matson said.
InMode kept its earnings outlook for the year at $2.58-$2.60 per share, which is just below INMD stock analysts' call for $2.63.
"But given the second-quarter upside, we expect management to raise the EPS guidance when InMode reports its full second-quarter results," Matson said. He kept his hold rating on INMD stock.
"InMode's strong second-quarter results, continued stability in our Google Trends aesthetics procedure search data and stronger-than-expected economic data may indicate that our fears of a near-term slowdown in the aesthetics market are unwarranted," Matson said.
InMode Has A Perfect EPS Rating
INMD stock has a nearly perfect Composite Rating of 98. This means shares rank in the top 2% of all stocks on a 1-99 scale of fundamental and technical measures, according to IBD Digital. Shares also have a perfect EPS Rating of 99, a measure of recent profitability.
The stock's Relative Strength Rating is slightly lower at 87. This puts the performance of INMD stock over the last running 12 months in the top 13% of all stocks, regardless of industry group.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
