Inmode Ltd (INMD)

Inmode Ltd (INMD) stock declined by 6.92% following the company's announcement of a lowered full-year revenue outlook. This revision was attributed to macroeconomic headwinds and a technical issue related to revenue recognition.

• Financial Performance: In its preliminary financials for Q1 2024, Inmode reported revenue of $80.0 million to $80.1 million, significantly below the consensus estimate of approximately $100.6 million. The company also revised its full-year revenue outlook to $485 million to $495 million, down from the previous guidance of $495 million to $505 million. This new forecast fell short of the $498.5 million estimated by forecasts.
• Challenges and Transition Period: Inmode highlighted the market launch of its new platforms this year, noting that its quarterly results would not fully reflect the pre-orders it is receiving. The company anticipates a transition period of a couple of quarters until its financials fully reflect the impact of the new platforms.
• Macroeconomic Environment: The company's management attributed the bearish outlook to challenges in the macroeconomic environment. These factors, along with the technical issue related to revenue recognition, contributed to the revised revenue outlook and the subsequent decline in the stock price.

Shares of Inmode Ltd (INMD) dropped by 9.99% from $23.62 to $21.26 in the trading on Wednesday, December 6, 2023. The reason why INMD is down today is due to a combination of lowered full-year guidance, including a reduction in adjusted EPS and sales projections, as well as the impact of unfavorable macroeconomic conditions on its platform sales, particularly in North America.

• Lowered Full-Year Guidance: Inmode Ltd revised its full-year guidance due to stronger-than-expected headwinds from the current macroeconomic environment. These challenges were causing a slowdown in platform sales, particularly in North America.
• Earnings Per Share (EPS) Downgrade: The company lowered its adjusted EPS outlook for the full year. It now expects adjusted EPS to be in the range of $2.47 to $2.50, compared to its prior guidance of $2.53 to $2.57. This downward revision in earnings projections likely contributed to the negative sentiment among investors.
• Revenue Guidance Adjustment: In addition to the EPS downgrade, Inmode Ltd also adjusted its sales guidance for the full year. It now anticipates sales to range from $485 million to $495 million, down from its previous range of $500 million to $510 million. This reduction in revenue expectations further impacted investor confidence.
• Macroeconomic Headwinds: The company's mention of stronger-than-expected headwinds from the macroeconomic environment suggests that broader economic conditions, including factors like supply chain disruptions, inflation, or other challenges, may have affected its sales and earnings outlook.

Shares of InMode Healthcare (INMD) dropped by 7.37% from $22.40 to $20.75 in the trading on Friday, October 13, 2023. The reasons why INMD stock down include:

• Low expect Q3 earnings: InMode Healthcare expects lower earnings for Q3 2023, with projected earnings per share (EPS) of $0.59 to $0.60, below analyst estimates of $0.66. Revenue projection for the quarter is in the range of $122.8 million to $123 million, which is below analysts' expectations of $136.94 million. Looking ahead, InMode Healthcare has revised its full-year 2023 revenue projection to be between $500 million and $510 million, down from its previous projection of $530 million to $540 million. Analysts, on average, had expected the company to report revenue of $538.03 million for the year.
• Downgrade rating: Canaccord Genuity analyst Caitlin Cronin downgraded InMode Ltd from a Buy rating to a Hold rating. Additionally, the analyst lowered the price target for INMD shares from $55 to $22. This downgrade and reduction in the price target may have contributed to the negative sentiment surrounding the stock. This downgrade, coupled with the earnings outlook, contributed to the stock's drop. InMode cited adverse macro-economic conditions as a factor in its expected earnings decline.

Shares of Inmode Ltd (INMD) dropped by 19.97% from $27.99 to $22.40 in the trading on Thursday, October 12, 2023. The reason why INMD stock down include:

• Higher-than-expected CPI: On October 12, a report revealed that September's Consumer Price Index (CPI) inflation came in at 3.7%, surpassing expectations of 3.6%. Core CPI inflation stood at 4.1%, in line with expectations. This higher inflation raised concerns among investors about a potential interest rate hike by the Federal Reserve, leading to a broader decline in the stock market, including AMR stock.
• Lower full-year guidance: Inmode Ltd made a preliminary announcement regarding its third-quarter revenue and full-year 2023 guidance. The company cited factors stemming from an economic slowdown, including "normal" third-quarter seasonality and slower purchase decisions due to reduced aesthetic activity during the summer. Additionally, financing constraints for medical equipment, marked by higher interest rates, tighter leasing approval standards, and loan processing bottlenecks, have negatively impacted Inmode platform sales globally. As a result of these challenges, the company revised its full-year 2023 revenue guidance to a range of $500 million to $510 million, down from previous estimates of $530 million to $540 million.