InMode (INMD) is a leading global provider of minimally and non-invasive cosmetic procedures; it develops, manufactures and markets devices harnessing novel radio-frequency technology, explains Tom Bishop, editor of BI Research.
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. The company targets 2 new product launches per year.
InMode’s preliminary Q2 results announcement on 7/12 propelled the shares nearly $18. Final Q2 results were even slightly ahead of the preliminary figures announced on 7/12.
Q2 EPS was $1.02 eclipsing the pre-7/12 consensus of $0.65 and sales of $87.3 million were miles beyond the pre-7/12 consensus of $66 million. And both were multiples of last year’s COVID-depressed figures.
InMode provided a major hike in its guidance for the full year. Revenue guidance went from the original $270 to $280 million after Q1 to $305 - $315 million in the 7/12 preliminary announcement and remains there.
Meanwhile 2021 non-GAAP EPS guidance has been increased from the earlier consensus of $2.75 to a range of $3.10 to $3.25 (there was no 2021 EPS guidance with the 7/12 preliminary release).
So that’s a big increase and very good news. Worldwide sales are growing rapidly as it gets a steady stream of approvals for its numerous platforms and as its marketing efforts are built up.
InMode has now also launched its new EmpowerRF Women’s Wellness platform, a new platform for women’s gynecology/health, an area not well addressed heretofore.
EmpowerRF offers a capability wherein the combination of multiple modalities allows for customized, layered proceures to address a broad range of conditions, including blood circulation, pain relief, pelvic floor weakness, along with stress, urge and mixed urinary incontinence.
INMD continues to hold the #2 position in the IBD 50 (Investor's Business Daily). While the sharp rise over the past month hints that some digestion is in order, the BI Rank of 10.8 says "buy".