InMode (INMD) stock rises 18% on expectations for record earnings

Source: ArtemisDiana/Shutterstock

It’s not every day that InMode (NASDAQ:INMD) stock market trends in financial news. However, today is a special day for the medical device company. As INMD shares rise due to heavy trading volume, investors are clearly pleased with the new record revenue expectations for the second quarter of 2022.

US traders may not be familiar with Israel-based InMode. With a market cap of over $2 billion, the company is bigger than you might think. InMode develops and sells medical devices that use radio frequency technology. These devices benefit surgeons and patients in plastic surgery, dermatology and more.

By all accounts, InMode is doing well in its field. The company’s preliminary second-quarter results suggest a non-GAAP gross margin “in the range of 83% to 85%.” It’s quite high.

Additionally, InMode expects to set a company record with revenue between $113 million and $113.3 million. Additionally, InMode raised its full-year revenue guidance range to between $425 million and $435000000. Previously, the range was between $415 and $425 million.

What is happening with INMD shares?

Suffice it to say, long-side INMD stock traders are ecstatic today. As of this writing, the shares are up 18%, after breaking above the $27 level.

This is surely a relief for the company’s downtrodden investors. They still have a lot of catching up to do though. At $99.27, the action’s 52-week high is high.

If there’s a silver lining here – besides InMode’s very bullish forecast – it’s that INMD stock is currently trading at a reasonable valuation multiple. Specifically, its 12-month price-to-earnings (P/E) ratio is currently 12.5x.

However, this number could be adjusted upwards soon if the buying pressure persists. CEO Moshe Mizrahy certainly seems confident about InMode’s prospects:

“Our record results in the second quarter of 2022 are an indication of the strong demand for our proprietary technologies in the area of ​​cosmetic surgery.”

Perhaps this company is on the cusp of a welcome summer turnaround.

As of the date of publication, David Moadel has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

David Moadel has delivered compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga and (of course) InvestorPlace.com. He is also the Chief Analyst and Market Researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.