Inspire Medical Systems (NYSE:INSP) shares ticked up today on fourth-quarter results that came in well ahead of the consensus forecast.
Shares of INSP were up more than 7% at $268.22 apiece in morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose more than 13%.
The Minneapolis-based implantable sleep apnea treatment developer posted profits of $3.2 million in the quarter. That amounts to earnings of 10¢ per share on sales of $137.9 million for the three months ended Dec. 31, 2022. Both earnings and sales topped Wall Street estimates. Analysts projected losses per share of 57¢ and revenues reaching $129.3 million.
Inspire recorded a massive bottom-line gain from losses of $2.4 million this time a year ago. It achieved that thanks to a 75% bump in revenues. The company has achieved significant sales growth over the past year, perhaps due in part to the absence of Philips from the respiratory sleep therapy market.
Inspire expects sales numbers to continue to rise
In 2022, revenues increased 74.7% compared to 2021, reaching a total of $407.9 million. Inspire’s outlook includes even more growth in 2023 with revenues projected between $560 million and $570 million. That would mark growth of approximately 37% to 40% compared to 2022.
Additionally, Inspire expects to activate between 52 and 56 new U.S. medical centers implanting Inspire therapy during each quarter of 2023. It also expects to add 12 to 14 new U.S. sales territories.
Providing an alternative to CPAP and BiPAP, Inspire develops an FDA-approved implantable neurostimulation technology. The company says it provides a safe and effective treatment for moderate to severe obstructive sleep apnea.
“Our growth in the fourth quarter, as well as for the year, was primarily driven by higher utilization at existing centers and the addition of 61 new U.S. implanting centers and 16 new U.S. sales territories,” said Tim Herbert, Inspire president and CEO. “With significant momentum and many accomplishments throughout our business, we are proud to achieve our first profitable quarter.”