IBD 50 Stock InMode Launches To Record High After Torpedoing Quarterly Forecasts

InMode stock launched to a record high Monday after the company’s preliminary second-quarter report blew Wall Street projections out of the water.


Medical aesthetics company InMode (INMD) also raised its full-year revenue outlook.

“While we had viewed InMode’s prior 2021 guidance as conservative, we are still surprised by the magnitude of the beat,” Needham analyst Mike Matson said in a note to clients. He maintained his buy rating on InMode stock, but raised his price target to 119 from 94.

In morning trading on the stock market today, InMode stock soared 8.4% near 104.20. The move put InMode stock near a profit-taking zone above a cup-with-handle buy point at 87.10, on the weekly chart.

InMode Stock Hits A Record

For the quarter, InMode expects to report $86.5 million to $87 million in sales, above projections for $66 million, according to FactSet. InMode beat forecasts by 31%, Matson said.

The company also expects adjusted profit of $1-$1.01 per share. InMode stock analysts called for 65 cents a share. InMode’s preliminary report topped expectations by 55%, Matson said.

Prior to this quarter, “InMode had beaten consensus revenue for the eight quarter since its (initial public offering) by an average of 16%,” he said. “And InMode had beaten consensus (adjusted earnings per share) in seven of the eight quarters by an average of 27%.”

On a year-over-year basis, both earnings and sales would rocket by triple-digit percentages.

InMode Also Boosts Guidance

InMode also raised its full-year revenue outlook to $305 million to $315 million. InMode stock analysts expected $279.3 million.

“InMode’s updated 2021 revenue guidance implies 48%-53% growth, which is consistent with InMode’s pre-pandemic growth (its revenue grew by 57% in 2019) and substantially better than its pandemic-impacted growth of 31.5% in 2020,” Matson said.

The company also expects adjusted gross margin to be 84%-86% in 2021.

Highly Rated Medical Stock

InMode stock is highly rated. Shares have a best-possible Composite Rating of 99. This puts the medical stock in the leading 1% of all stocks in terms of key fundamental and technical measures.

Shares also have a strong Relative Strength Rating of 96. So, InMode stock ranks in the leading 4% of all stocks in terms of 12-month performance, according to IBD Digital.

InMode stock is also listed fourth on the IBD 50. Keep tabs on IBD stock lists.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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