iRhythm Technologies
(Nasdaq: IRTC)
shares took a hit today on third-quarter results that came in mixed compared to the consensus forecast.
Shares of IRTC fell 5.5% at $108.75 apiece in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — remained even.
The San Francisco-based heart monitoring technology maker posted losses of $38.7 million, or $1.26 per share. This came from sales of $132.5 million for the three months ended Dec. 31, 2023. iRhythm nearly doubled its losses from the same period a year ago despite 17.7% sales growth.
Adjusted to exclude one-time items, losses per share came in at 84¢. That fell 24¢ shy of projections on Wall Street, where analysts expected $130.2 million in revenue.
Recent highlights for iRhythm included CE mark for the next-generation Zio system in January. The company reported its second-best quarter of Zio long-term continuous monitoring new account openings in the U.S. during the quarter as well. The company also made a first 510(k) submission to the FDA for legacy changes to Zio AT.
BTIG analysts Marie Thibault and Sam Eiber say the company now filed an additional 510(k) submission to the FDA for new design features and enhanced labeling. They said management anticipates a potential mid-year clearance. Additionally, work on the company’s FDA warning letter continues to proceed “as expected.”
iRhythm projects full-year revenues to range between $575 million and $585 million.
The analysts say the full-year outlook “remains achievable.” However, they say it may disappoint investors who expected a “beat-and-raise year.” That could explain the stock dip following the earnings release.
“This past year was truly transformational for iRhythm as we made significant strides to advance our mission in our core U.S. market while advancing multiple initiatives that set us up for future growth,” said Quentin Blackford, iRhythm president and CEO.