Mechanical resonance imaging (MRI) equipment specialist Iradimed (NASDAQ: IRMD) ended the stock trading week in style on Friday. On the back of a well-received quarterly earnings report, investors traded the company’s shares up by more than 4%. That was robust enough to trounce the 0.3% gain of the bellwether S&P 500 index that trading session.
A double beat to put a cap on the week
Iradimed posted its first-quarter figures that morning, and Mr. Market clearly liked what he saw. The company’s top line expanded by 13% to just under $22 million, which exceeded the average analyst estimate of $20.8 million.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
In terms of profitability, Iradimed’s net income under generally accepted accounting principles (GAAP) also increased, by 24% to over $5.8 million. On a per-share, non-GAAP (adjusted) basis, profitability advanced by 17% to $0.49. Again, this was a beat for Iradimed, as pundits tracking the specialty medical devices stock were collectively estimating $0.46.
The bulk of Iradimed’s revenue comes from sales of devices used in MRI systems. This part of the company’s business generated revenue of almost $15.4 million during the quarter, a 19% increase. Of this, the most successful sub-category was MRI-compatible intravenous (IV) infusion pump devices.
Pumped up for the future
In its earnings release, Iradimed waxed bullish about the release of its latest IV pump system, the 3870. The product’s commercial launch occurred during the quarter, and the company quoted CEO Roger Susi as saying, “Customer reception has been very encouraging, with tremendous interest and strong early order activity.”
Management also maintained its revenue guidance of $91 million to $96 million, and its bottom-line forecast of $2.06 to $2.21 for adjusted earnings per share.
As the American and indeed global population ages, the world will require more medical care. Consequently, well-run and profitable niche medical device makers should do increasingly well. I’d feel confident investing in Iradimed stock today.
Should you buy stock in Iradimed Corporation right now?
Before you buy stock in Iradimed Corporation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Iradimed Corporation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
