iRhythm Technologies (NASDAQ: IRTC) posted first-quarter results that missed the earnings consensus on Wall Street but beat the revenue projections.
The San Francisco-based company yesterday evening reported losses of –$27.8 million, or –95¢ per share, on sales of $74.3 million for the three months ended March 31 — versus a loss of –9.1 million, or –34¢ per share, for Q1 2020. Sales were up 16.96% compared with Q1 2020 for the wearable cardiac biosensor company.
Earnings per share were -95¢, 12¢ behind The Street, where analysts were looking for sales of $70.3 million.
“The clinical and economic value of our Zio service continues to drive strong demand and generated record volumes in the first quarter. Volumes were 31% above pre-COVID levels seen in the first quarter of 2020, powered primarily by Zio XT in the U.S., while Zio AT in the U.S. and Zio XT in the U.K. outpaced overall company growth on a percentage basis,” president and CEO Mike Coyle said in a news release.
Coyle expressed confidence in iRhythm’s continued market leadership. He also said there have been constructive discussions with regional Medicare administrative contractor Novitas Solutions, which earlier this year dealt a setback for iRhythm and its competitors when it published significant rate cuts for external EKG monitoring.
“We remain steadfast in our pursuit of higher Medicare reimbursement that is more in line with the significant benefits that Zio XT provides,” Coyle said. “We are also realistic about what direction reimbursement dynamics may take. Accordingly, we are focused on instilling greater discipline across our organization to increase efficiency in our manufacturing, clinical operations, revenue cycle management and sales and marketing functions.”
iRhythm said it expects second-quarter revenue to have sequential volume growth of approximately 4% over the first quarter.
Shares in IRTC were up 5.59% to $79.11 apiece by midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up slightly.