IRadimed Corp. reported Q2/22 financial results that were modestly higher than expected. ROTH Capital Partners LLC advised in a research update that based on the company's higher revenues, improved margins and disciplined cost control measures it is maintaining its Buy rating on IRadimed and raising its price target to $42/share (up from $40).

In a July 29 research note, ROTH Capital Partners LLC Healthcare and Medical Technology Analyst Scott R. Henry, CFA advised that magnetic resonance imaging (MRI) compatible medical device maker IRadimed (IRMD:NASDAQ) 

posted solid operating results during Q2/22 that were modestly higher than expectations.

The analyst highlighted that in Q2/22 earnings report the company maintained 2022 revenue and earnings per share (EPS) guidance and saw strength in both its monitors and pumps, which now appears to indicate that the estimates may be on the conservative side. In addition, approval for the firm's next generation pump remains on schedule for Q4/22.

For Q2/22. IRadimed Corp. posted revenue of $12.7 million ($12.7M) which exceeded ROTH's forecast for $12.6M. In the quarter gross margin came in at 79.7%, ahead of ROTH's 76.8% estimate resulting in a gross profit of $10.1M which also exceeded the research firm's forecast for $9.7M.

The analyst advised that in Q2/22 IRadimed had non-GAAP EPS of $0.26 per share, which exceeded ROTH's target by $0.02 per share.

IRadimed's revenues in the latest quarter grew 30% year-over-year to $12.7M. Total revenues consisted of $3.9M from Pump revenue, $4.9M from Monitor revenue, and $3.9M from Disposables/services revenue. Both Pump and Monitor revenues came in slightly higher than expected, while the Disposables/services segment performed at the lower range of ROTH Capital's estimates.

The company did not sell any of its new MRI Ferrous Metal Detector (FMD) products during Q2/22. ROTH said it thought that this area would contribute about $300,000 ($300K) in revenue but added that management is targeting twelve booked sales in Q3/22.

The analyst mentioned that there are a few positive takeaways from the Q2/22 results. IRadimed advised that it is maintaining its FY/22 revenue estimates of $52.5-53.2M and non-GAAP EPS guidance of $0.96-1.03. ROTH Capital noted that its forecasts are presently at the upper end of IRadimed's EPS guidance.

Another key point is that IRadimed's management remains confident that its next-generation pump will gain approval from the U.S. FDA in late September or October which would likely make this a Q4/22 event. The pump device is expected to offer an easier interface. This approval might provide a positive catalyst for the company since the firm's FY/22 revenue guidance does not include any revenues from sales of this equipment.

IRadimed is a medical device company that designs, manufactures, and sells MRI-compatible devices and accessories to hospitals, acute care facilities, and outpatient imaging centers in the U.S. and world markets. The firm's product line includes the MRidium MRI-compatible intravenous (IV) infusion pump system and an MRI-compatible patient vital signs monitoring system. The company also offers related accessories, sensors, and equipment such as non-magnetic IV poles, wireless displays and controls, and monitoring equipment.

ROTH Capital Partners advised that it is maintaining its "Buy" rating for IRadimed Corp. and is increasing its price target by $2 per share to $42. The research firm noted that it raised its price target on account of increases in its 2022 non-GAAP EPS forecast and the company's larger cash balances.

The firm indicated that it arrived at its 12-month price by utilizing a ~36x multiple of ROTH's forecasted FY/22E non-GAAP EPS of $1.03 and then adding approximately $4/share based upon IRadimed's net cash position.

IRadimed Corp. shares trade on the Nasdaq Exchange under the symbol "IRMD" and last closed for trading at $38.36 on Tuesday, August 2, 2022. The company has approximately 12.56 million outstanding shares and a market cap of around $530.69 million. The firm's shares have traded in a 52-week range of $28.90-55.92/share.

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