Invacare (NYSE:IVC) shares ticked up today on first-quarter results that saw earnings top the consensus forecast despite reduced revenues.
The Elyria, Ohio-based medical equipment maker posted profits of $732,000, or 2¢ per share, on sales of $218.4 million for the three months ended March 31, 2020, for a bottom-line return to profits on a sales decline of 2.2%.
Those results fall in line with the preliminary projections Invacare put out last month amid the impact from the COVID-19 pandemic.
Adjusted to exclude one-time items, earnings per share were -21¢, 1¢ ahead of Wall Street, where analysts were looking for sales of $221.7 million.
“The past few months with COVID-19 have undoubtedly tested the resolve of our communities, customers, and employees,” Invacare chairman, president & CEO Matt Monaghan said in a news release. “While we continue to prioritize worker and workplace safety, we also acknowledge and accept the great responsibility of being uniquely positioned to be part of the solution.
“As an ‘essential business’ making medical devices that help relieve symptoms and strain on hospital systems, I am sincerely proud to say that the company is meeting the challenge with all of our medical device facilities still operating and supporting relief efforts around the world.”
The company noted that its respiratory products, beds and therapeutic support surfaces are in high demand around the world amid the COVID-19 pandemic, and it is taking steps to increase production.
At the same time, limited access to clinicians and healthcare facilities has led to a decline in quotes and orders for mobility and seating products, which accounts for 43% of Invacare’s trailing 12-month net sales, according to the release.
As a result of the uncertainties brought on by the pandemic, Invacare is suspending its 2020 financial guidance until further notice.
IVC shares were up 6.8% at $7.07 per share in mid-morning trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up 1.2%.