Axonics Q1 Soars Past Estimates: Analysts Say Annual Sales Outlook Is 'Conservative'

Axonics Inc AXNX reported a Q1 EPS loss of $(0.19), better than the consensus of $(0.29). Sales increased 46% Y/Y to $70.65 million, beating the consensus of $65.26 million.

The company expects FY23 sales of $348 million, compared to earlier guidance of $342 million versus the consensus of $343.77 million.

Piper Sandler says the guidance could ultimately prove conservative again.

AXNX also shows favorable operating leverage down the P&L, and the recently completed tuck-in M&A transaction for a lead placement technology offers an intriguing future complement to the sacral neuromodulation business. 

It reiterates the Overweight rating with a price target of $84.

Needham writes that given AXNX's 46% growth in 1Q23, 27% revenue growth guidance is conservative.

The analyst notes that Axonics' F15 non-rechargeable SNM system, launched in April 2022, offers nearly twice the battery life of Medtronic Plc's MDT InterStim X non-rechargeable system, along with other advantages. 

The F15 is enabling AXNX to capture market share from Medtronic.

It reiterates the Buy rating with a price target of $73 from $71 due to a higher revenue estimate.

Price Action: AXNX shares are down 10.40% at $52.57 on the last check Tuesday.