Medical aesthetics company InMode preannounced better-than-expected first-quarter sales and profits on Wednesday, pushing INMD stock closer to a breakout.
For the three months that ended March 31, InMode expects sales to land between $105.7 million and $105.9 million. That's above forecasts for $100.3 million, Needham analyst Mike Matson said in a note to clients. It implies sales grew about 23% year over year.
The company also called for adjusted earnings of 50- to 51-cents per share, above analyst forecasts for 46 cents, he said. Earnings grew roughly 26% to 29%, he said.
On today's stock market, INMD stock surged 5.1% to close at 36.90. Shares are closing in on a buy point at 41.94 out of a flat base, according to MarketSmith.com.
INMD Stock: Remodeling The Body
InMode sells minimally invasive tools that use radio frequency to remodel how the body stores fat. The company also offers skin-tightening procedures and has branched into gynecological services.
Matson notes InMode didn't update its full-year outlook. Previously, the company projected $525 million to $530 million in sales and adjusted earnings of $2.58-$2.60 per share. Sales would jump 16%-17% as earnings increase 6%-7%. Both pieces of guidance topped INMD stock analysts' consensus forecasts.
He expects InMode to boost its full-year guidance on the first-quarter earnings call, slated for May 2.
But Matson kept his hold rating on INMD stock.
"Despite the strong first-quarter results, we remain concerned that a slowing economy will reduce demand for high-priced aesthetic procedures and cause InMode's revenue growth to slow," he said.
Top 3% In Fundamentals, Technicals
Still, InMode shares remain highly rated. INMD stock has a Composite Rating of 97, which puts it among the top 3% of all stocks when it comes to fundamental and technical measures.
The stock's EPS Rating, a measure of profitability on a 1-to-99 scale, is a 98. Shares have a lower Relative Strength Rating of 80. But that still puts INMD stock in the leading one-fifth of all stocks in terms of 12-month performance, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
