Inari Medical (Nasdaq:NARI) shares dipped today despite fourth-quarter results that left analysts excited for the coming year.
Shares of NARI fell 3.5% at $55.34 apiece in midday trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly.
The Irvine, California-based thrombectomy device developer posted losses of $4 million. That amounts to 11¢ per share on sales of $107.8 million for the three months ended Dec. 31, 2022. Losses per share came in 5¢ ahead of expectations on Wall Street, while sales narrowly topped projections by 0.2%.
Inari reported a bottom-line slide into the red from profits of nearly $1 million a year ago. However, sales grew for the fourth quarter year-over-year by 29.5%. The company attributed its sales growth to U.S. expansion, increased procedure adoption and the introduction of new products.
Analysts excited by Inari’s results
According to BTIG analyst Marie Thibault, Inari “came out swinging” on competition from Penumbra’s Lightning Flash launch. Penumbra CEO Adam Elsesser said on the company’s recent earnings call that early Lightning Flash results provided “even more confidence.”
Thibault said Inari management believes “blood loss remains an issue for this new device.” Meanwhile, they say no Inari account is trialing a switch to the competitive device.
“In our view, NARI continues to demonstrate excellent operational performance, sales growth, consistent commercial execution, and multiple opportunities for expansion,” Thibault wrote. “The company also has an enviable gross margin profile and a strong balance sheet. Near-term competitive noise does not diminish our bullish view.”
Inari reaffirmed its 2023 revenue guidance for between $470 million and $480 million.
“Crisp execution across all five of our growth drivers generated robust revenue growth in the fourth quarter,” said Drew Hykes, CEO of Inari Medical. “We are especially pleased with the milestones we achieved across several clinical studies as well as two important new product launches. Our efforts continue to drive market expansion and uptake of our devices while further distancing Inari from both existing and future competition.”