InMode (INMD) has climbed 51% in the past 3 months; the company is a leading global provider of minimally and non-invasive cosmetic procedures, reports Tom Bishop, small cap expert and editor of BI Research.
The company develops, manufactures and markets devices harnessing novel radio-frequency technology. Most notably InMode’s devices can be used for fat reduction while simultaneously tightening the skin using just local anesthesia, no scalpel, no scarring and with recovery time of about a day or so instead of a couple weeks.
Products are primarily designed to address three treatment areas — face and body contouring, medical aesthetics (such as sunspots, hair, wrinkles) and women’s health. Its recently launched hands-free Evoke and Evolve have come along at just the right time.
InMode’s business is surging despite the pandemic — or because of it? Yup, a cosmetic surgeon who spoke from the trenches on InMode’s Q4 conference call noted that people see themselves on Zoom calls … for hours … and they come in to fix what they see. The many long tentacles of this pandemic.
Anyway, on 2/10 the company released final Q4 and 2020 results which edged out the preliminary view given back on 1/12. Q4 revenue surged 60% to $75.2 million leading to a doubling of adjusted EPS to $.94.
For the full year revenues, which of course included the lean months of March – May, nonetheless roared ahead 32% to $206 million, while adjusted EPS landed at $2.11 up 30% vs. last year’s $1.63.
InMode also guided to 2021 revenues of $250 to $260 million (unchanged from earlier) and this time also offered non-GAAP EPS guidance of $2.34 to $2.45.
Given the resurgence of COVID-19 cases this winter management may just conservatively be allowing itself some leeway… and allowing for more sales rep travel expenses in 2021. The minimally invasive and/or hands free nature of InMode’s products have continued to be well accepted during the pandemic.
InMode believes its treatments (especially its hands free Evoke and Evolve) are “becoming the standard of care during the COVID-19 environment.” The company has $260 million of cash, has now risen to #4 in the Investor's Business Daily IBD-50 with a composite rating of 98 and a strong "BI Rank" buy rating.
