IBD 50 Stock InMode Launches To Record High After Torpedoing Quarterly Forecasts

InMode stock launched to a record high Monday after the company’s preliminary second-quarter report blew Wall Street projections out of the water.


Medical aesthetics company InMode (INMD) also raised its full-year revenue outlook.

“While we had viewed InMode’s prior 2021 guidance as conservative, we are still surprised by the magnitude of the beat,” Needham analyst Mike Matson said in a note to clients. He maintained his buy rating on InMode stock, but raised his price target to 119 from 94.

On the stock market today, InMode stock soared 12.5% to 108.20. The move put InMode stock inside a profit-taking zone above a cup-with-handle buy point at 87.10, on the weekly chart.

InMode Stock Hits A Record

For the quarter, InMode expects to report $86.5 million to $87 million in sales, above projections for $66 million, according to FactSet. InMode beat forecasts by 31%, Matson said.

The company also expects adjusted profit of $1-$1.01 per share. InMode stock analysts called for 65 cents a share. InMode’s preliminary report topped expectations by 55%, Matson said.

Prior to this quarter, “InMode had beaten consensus revenue for the eight quarter since its (initial public offering) by an average of 16%,” he said. “And InMode had beaten consensus (adjusted earnings per share) in seven of the eight quarters by an average of 27%.”

On a year-over-year basis, both earnings and sales would rocket by triple-digit percentages.

InMode Also Boosts Guidance

InMode also raised its full-year revenue outlook to $305 million to $315 million. InMode stock analysts expected $279.3 million.

“InMode’s updated 2021 revenue guidance implies 48%-53% growth, which is consistent with InMode’s pre-pandemic growth (its revenue grew by 57% in 2019) and substantially better than its pandemic-impacted growth of 31.5% in 2020,” Matson said.

The company also expects adjusted gross margin to be 84%-86% in 2021.

Highly Rated Medical Stock

InMode stock is highly rated. Shares have a best-possible Composite Rating of 99. This puts the medical stock in the leading 1% of all stocks in terms of key fundamental and technical measures.

Shares also have a strong Relative Strength Rating of 96. So, InMode stock ranks in the leading 4% of all stocks in terms of 12-month performance, according to IBD Digital.

InMode stock is also listed fourth on the IBD 50. Keep tabs on IBD stock lists.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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