Inspire Medical Systems, Inc. INSP announced preliminary revenues for the fourth quarter and full year 2024 yesterday. Despite the robust preliminary results, the company’s shares plunged nearly 13.4% at yesterday’s closing.
The company is scheduled to release fourth-quarter results on Feb. 10.
Per the preliminary report, fourth-quarter 2024 total revenues are estimated to be between $239.5 million and $239.7 million, up 25% year over year. The Zacks Consensus Estimate of $233 million lies below the preliminary figure.
Inspire Medical activated 72 new centers in the United States in the fourth quarter of 2024, thereby bringing the total to 1,435 U.S. medical centers implanting Inspire therapy. The company also created 12 new sales territories in the United States in the to-be-reported quarter, thus bringing the total to 335 U.S. sales territories.
Per management, Inspire Medical finished the year with significant momentum. The company is also implementing a new organizational structure intended to further fuel its continued growth, including the expansion of its leadership team. This raises our optimism about the stock.
Per the preliminary report, full-year 2024 total revenues are estimated to be between $802.6 million and $802.8 million, up 28% from the comparable 2023 period. The Zacks Consensus Estimate of $796.1 million lies below the preliminary figure.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
INSP’s Guidance for 2025
Inspire Medical has issued its full-year 2025 guidance.
Total revenues are expected to lie in the range of $940 million-$955 million, reflecting a 17-19% increase over the comparable 2024 period. The Zacks Consensus Estimate is pegged at $949.4 million.
A Brief Q4 Analysis of Inspire Medical
During the fourth quarter of 2024, Inspire Medical initiated the soft launch of the Inspire V neurostimulator, with over 40 implants completed in Singapore and the United States. This looks promising for INSP’s top-line growth during the quarter.
On the third-quarterearnings callin November 2024, Inspire Medical’s management confirmed that its U.S. revenues registered a solid year-over-year uptick. This growth reflected greater therapy adoption primarily resulting from increased market penetration in existing centers and expansion into new implanting centers in the United States and new U.S. sales territories.
On the same call, management continued that its international business also witnessed strong growth. The company witnessed strength in Germany, Switzerland, the Netherlands and Belgium while it began reimbursement procedures in France. We expect this trend for both its domestic and international businesses to have continued in the fourth quarter, thereby driving up its revenues.
During the third quarter of 2024, Inspire Medical began the soft launch of its new SleepSync programming system, designed to increase the efficiency of Inspire patient management with greater accessibility and a comprehensive view of therapy history. Per management, the early feedback has been promising and it expected full U.S. availability in 2024. This also looks promising for its overall revenues in the fourth quarter.
On the call, management had expressed its concerns about facing some revenue headwinds in the fourth quarter of 2024 due to the hurricanes and related IV solution shortage impacts. This is likely to have weighed on INSP’s performance during the quarter.
The company’s preliminary projection of robust improvement in revenues on the back of strength in its businesses lifts our confidence about the stock.
INSP’s Price Performance
Shares of the company have lost 11.4% between Oct. 1 and Dec. 31, 2024, compared with the industry’s 4.9% decline. The S&P 500 has gained 3.7% during the same time frame.
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Inspire Medical’s Zacks Rank & Key Picks
Currently, INSP carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Cardinal Health, Inc. CAH, Cencora, Inc. COR and Boston Scientific Corporation BSX.
Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health’s shares have gained 7.2% compared with the industry’s 0.8% growth between Oct. 1 and Dec. 31, 2024.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.4%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average being 6.9%.
Cencora has gained 0.2% against the industry’s 12.7% decline between Oct. 1 and Dec. 31, 2024.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.8%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%.
Boston Scientific’s shares have rallied 6.2% against the industry’s 4.1% decline between Oct. 1 and Dec. 31, 2024.
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Inspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report
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