Business

SWAV Stock: Earnings soar 991%, blowing predictions


medical shockwave (SWAV) tripled Wall Street’s fourth-quarter profit expectations, sending SWAV stock soaring on Friday.




X



The company manufactures lithotripsy devices to “break” hard calcium in the arteries. For the December quarter, Shockwave earned $3.71 per share, well ahead of predictions of $1.01, according to FactSet. Revenue also beat views at $144 million, meeting Shockwave’s own premium guidance.

On a year-over-year basis, earnings skyrocketed 991%. Sales were also 71% higher.

At noon trade on stock market today, SWAV shares rose 4.2% near 199.30. Prior to that, the stock had rallied as much as 14.8%, hitting a peak of 219.49.

SWAV Stock: Reduces Risk of Heart Complications

Shockwave’s technology removes calcifications in the arteries. If left untreated, they can lead to heart attack, stroke or death. Shockwave hopes their technology will eventually replace atherectomy, a method that uses a small drill to remove small plaque buildup.

For the year, Shockwave was aiming for $660 million to $680 million in revenue, up 35%-39%. SWAV Securities analysts now forecast revenue of $671.9 million this year and earnings of $3.98 per share. Income will decrease by more than 30%.

However, there can be some downsides to that guideline. Shockwave is currently working on acquiring Neovasc for $100 million. Neovasc, which does not do business in the United States, creates a platform for the treatment of refractory angina. This chronic condition causes chest pain. Shockwave estimates the market to be worth $5 billion.

SWAV stock has regained its value 50 day moving average on the income statement, MarketSmith.com Shows. But stocks are still below their level 200 day road.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

YOU MIGHT ALSO LIKE:

Valneva shares ousted when it hits ethical hurdles with Pfizer in Lyme disease trial

A Patent Cliff Coming to Bristol – Can Billions of Dollars in New Products Fill the Gap?

How to Research Growth Stocks: Why This IBD Tool Simplifies Finding Top Stocks

Learn how to time the market with IBD’s ETF Market Strategy

Join IBD Live for stock ideas every morning before opening

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button