InMode (NASDAQ:INMD) Shares Gap Down on Disappointing Earnings

Key Points

• EPS miss: InMode reported Q EPS of $0.25 vs. $0.30 expected (a $0.05 miss), prompting shares to gap down from $14.40 to $13.40 and trade down about 6.3% to roughly $13.44 on elevated volume.
• Revenue beat but muted growth: Revenue came in at $82.02M vs. $79.84M expected, up 5.3% year-over-year, while analysts maintain a consensus Hold rating with an average target price of $17.25.

InMode Ltd. (NASDAQ:INMD - Get Free Report) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $14.40, but opened at $13.40. InMode shares last traded at $13.4380, with a volume of 385,949 shares trading hands.

The healthcare company reported $0.25 earnings per share for the quarter, missing analysts' consensus estimates of $0.30 by ($0.05). The firm had revenue of $82.02 million for the quarter, compared to analyst estimates of $79.84 million. InMode had a net margin of 25.33% and a return on equity of 14.52%. The business's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.31 EPS.

Wall Street Analyst Weigh In

A number of research firms have weighed in on INMD. BTIG Research reissued a "neutral" rating on shares of InMode in a research report on Monday, January 26th. Robert W. Baird set a $17.00 target price on shares of InMode in a research report on Wednesday, February 11th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of InMode in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, InMode presently has a consensus rating of "Hold" and an average target price of $17.25.

Hedge Funds Weigh In On InMode

Institutional investors and hedge funds have recently modified their holdings of the business. ARGA Investment Management LP boosted its holdings in InMode by 355.0% during the 3rd quarter. ARGA Investment Management LP now owns 143,658 shares of the healthcare company's stock worth $2,141,000 after acquiring an additional 112,087 shares during the last quarter. Hussman Strategic Advisors Inc. purchased a new position in InMode during the 3rd quarter worth $1,564,000. State of New Jersey Common Pension Fund D boosted its holdings in InMode by 612.1% during the 3rd quarter. State of New Jersey Common Pension Fund D now owns 96,120 shares of the healthcare company's stock worth $1,432,000 after acquiring an additional 82,621 shares during the last quarter. Doma Perpetual Capital Management LLC boosted its holdings in InMode by 26.8% during the 3rd quarter. Doma Perpetual Capital Management LLC now owns 2,838,431 shares of the healthcare company's stock worth $42,293,000 after acquiring an additional 599,108 shares during the last quarter. Finally, Ancient Art L.P. purchased a new position in InMode during the 3rd quarter worth $14,254,000. 68.04% of the stock is currently owned by institutional investors.

InMode Trading Down 6.3%

The stock has a market capitalization of $854.73 million, a PE ratio of 9.38 and a beta of 1.97. The stock's fifty day simple moving average is $13.83 and its 200-day simple moving average is $14.36.

About InMode

InMode Ltd. NASDAQ: INMD is a medical technology company headquartered in Israel that develops, manufactures and markets devices for aesthetic and medical treatments. The company specializes in energy-based technologies, primarily radiofrequency platforms, designed to deliver minimally-invasive and non-invasive procedures.

InMode's product portfolio encompasses a range of modular systems targeting body contouring, facial rejuvenation, skin tightening and other cosmetic applications. Key offerings include devices built on proprietary radiofrequency and radiofrequency-assisted lipolysis, enabling physicians to perform treatments such as tissue coagulation, skin resurfacing and subdermal volumizing with reduced downtime.

The company distributes its technologies through direct sales operations and distribution partners, serving medical professionals across multiple geographies including North America, Europe, Asia Pacific and Latin America.

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