iRhythm's Q4 Earnings Beat Expectations, Analysts Remain Bullish On Upcoming Catalysts

  • iRhythm Technologies Inc IRTC reported Q4 FY22 revenue of $112.6 million, up 37.7% Y/Y beating the consensus of $110.26 million.
  • The company reported a net loss of $(20.2) million, a $12.3 million improvement compared to the fourth quarter of 2021.
  • It reported an adjusted EBITDA of $1.1 million, an $18.4 million improvement compared to Q4 FY21.
  • iRhythm Technologies sees FY23 revenues of $475-$485 million compared to the consensus of $485.6 million.
  • Adjusted EBITDA margin is expected to be approximately (0.5)% to 0.5% of revenues.
  • William Blair keeps Outperform on the stock, noting the catalysts like the launch of its next-gen Zio monitor, Zio watch, international expansion, clinical data around asymptomatic patients, and indication expansion on the horizon.
  • The analyst says the long-term remains intact and sees the risk/reward at this valuation as quite favorable. 
  • Needham writes that 2023 revenue guidance was below consensus, while adjusted EBITDA guidance of breakeven at the mid-point was above consensus.
  • iRhythm's upcoming data presentation at ACC could have clinical and competitive implications. 
  • Given IRTC's improving fundamentals with multiple upcoming catalysts, Needham reiterates the Buy rating but cuts the price target from $140 to $133.
  • Price Action: IRTC shares are up 2.34% at $110.21 on the last check Friday.
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