InMode Soars On Bullish Pre-Announcement — But There's A Slight Caveat

InMode preannounced better-than-expected first-quarter sales and profits on Wednesday, pushing the company's stock price closer to a breakout.

InMode, a medical aesthetics company, announced better-than expected first-quarter profits and sales on Wednesday. This pushed INMD stock towards a breakout.

InMode anticipates that sales for the three-month period ending March 31 will be between $105.7 and $105.9 millions. In a client note, Needham analyst Mike Matson stated that this was above the forecast of $100.3 million. This implies that sales increased by about 23% over the past year.

He said that the company was also expecting adjusted earnings between 50 and 51 cents per share. This is above analyst expectations of 46 cents. He said earnings grew by 26% to 29%.

INMD's share price rose 5.1% today to 36.90. reports that shares are close to a buying point of 41.94 from a flat basis.

InMode offers radio frequency tools to help remodel the way your body stores fat. The company offers skin tightening procedures, and has expanded into gynecological service.

Matson points out that InMode has not updated its outlook for the full year. The company had previously projected sales of $525-$530 million and earnings adjusted to $2.58-2.60 per share. Sales would increase by 16%-17%, while earnings would rise 6%-7%. Both guidances exceeded INMD analysts' consensus expectations.

He expects InMode will increase its guidance for the full year on May 2's earnings call.

Matson maintained his Hold rating on INMD.

He said that, despite the positive first-quarter results of InMode, he was concerned about a slowing economic environment which would reduce the demand for expensive aesthetic procedures. This could also slow down InMode’s revenue growth.

InMode's shares are still highly rated. INMD has a Composite rating of 97 which places it in the top 3% when it comes down to technical and fundamental measures.

The stock's EPS rating, which is a measure for profitability on a scale of 1 to 99, is a score of 98. The Relative strength rating of the shares is 80. IBD Digital says that this still places INMD in the top one-fifth in terms of performance over a 12-month period.

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