- Wearable electrocardiograph patch maker IRhythm Technologies Inc's IRTC lowered its revenue guidance for 2021 due to unforeseen impacts related to the COVID-19 Delta variant, customer staffing challenges, and delayed account launches and expansion.
- It expects sales of $317 million - $319 million (consensus $323.46 million) dropped from a previous estimate of $320 million - $325 million.
- The company posted Q3 revenue of $85.4 million, +18.7% Y/Y.
- The gross margin declined from 74.7% to 65.7%, primarily due to a decrease in Zio XT Medicare reimbursement rates and higher costs related to ensuring clinical capacity.
- IRhythm posted EPS loss of $(0.81), wider than the $(0.17) posted a year ago but ahead of Wall Street estimate of $(1.10).
- "Our third-quarter results reflect the continued strength of our Zio platform with a further market penetration of Zio XT in the U.S. complemented by strong growth from Zio AT and in the U.K. Once again, strong volume growth offset Medicare pricing headwinds," said IRhythm President and CEO Quentin Blackford.
- Related Link: Why Are iRhythm Shares Soaring Today?
- Price Action: IRTC shares closed lower by 8.60% at $104.96 on Friday.
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