Inspire Medical Pops 6.4% As 2021 Revenue Outlook Outpaces Estimates


Inspire Medical Systems’ shares were up about 6.4% in Wednesday’s pre-market trading session after the medical technology company’s 2021 revenue guidance topped the Street’s estimates. Meanwhile, it reported better-than-expected results for the fourth quarter.

Inspire Medical (INSP) reported a 4Q loss of $0.28 per share, which was narrower than the year-ago period’s loss of $0.38 per share. Analysts were looking for a loss of $0.48 per share.

Its revenues spiked 71% year-over-year to reach $46 million and handily exceeded analysts’ expectations of about $41.1 million. The top-line growth reflected “the continued impact of the restart from the COVID-19 pandemic with a high level of implant procedures and the opening of new implanting centers,” said the company’s CEO Tim Herbert.

Inspire Medical activated 55 new medical centers in the U.S. during the quarter, exceeding its own guidance of opening 28 to 30 new centers. At the end of the quarter, the company had a total of 425 U.S. centers implanting Inspire therapy.

As for 2021, Inspire Medical Systems expects to generate revenues in the range of $183-$188 million, versus the Street’s estimates of $171.7 million. Moreover, the 2021 revenue outlook reflects year-over-year growth of about 59% to 63%.  (See Inspire Medical stock analysis on TipRanks)

Further, the company expects to activate 34 to 38 new U.S. implanting centers in each quarter of 2021.

Following the results, Oppenheimer analyst Suraj Kalia said, “INSP notes that it’s back to pre-COVID levels, though we note that no other company in the sector has reported such a step-change, which makes the numbers all the more curious.” He maintained a Hold rating, citing “our continued concerns on DTC [direct-to-consumer] spend and patient selection/outcomes.”

Overall, the Street has a cautiously optimistic outlook on the stock, with a Moderate Buy consensus rating based on 3 Buys and 3 Holds. The average analyst price target of $230.25 implies upside potential of about 4.4% to current levels. Shares have rallied by about 171.4% in one year.

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