iRhythm Technologies (NASDAQ: IRTC) reported mixed Q4 results but predicted strong sales growth in 2021.
The San Francisco–based company — maker of the Zio ambulatory cardiac monitoring patch — reported a loss of –$9.7 million, or –33¢ per share, on sales of $78.8 million for the three months ended Dec. 31, 2020, nearly halving its losses on 33% sales growth compared with Q4 2019.
The earnings were 2 pennies behind The Street, where the analyst consensus was a loss of –31¢ per share on sales of $76.57 million.
“Once again, fourth-quarter results were driven by further penetration of Zio XT in both existing and new accounts, continued ramp of Zio AT and continued utilization of our Home Enrollment service in telemedicine settings,” iRhythm CEO Mike Coyle said in a news release posted yesterday evening.
Due to continuing uncertainties in reimbursement, the company isn’t able to provide revenue or margin guidance, but Coyle in this evening’s news release mentioned continued strong volume growth in 2021.
“With less than 20% penetration in our core market, we expect to see continued strong growth from Zio XT in new and existing accounts and proportionately greater growth from Zio AT and from the U.K. Demand for our Zio service remains strong and our physician customers are expanding their utilization of the service, driving Zio as the new standard of care in ambulatory cardiac monitoring,” Coyle said.
A continued uncertainty for iRhythm is how much the regional Medicare administrative contractor Novitas Solutions might restore some of the significant rate cuts it published for external EKG monitoring in January. Coyle said iRhythm and others in the industry have met with Novitas since it proposed the rates.
“We believe the evidence we presented was compelling but can provide no assurances as to if and when Novitas will change the proposed rates,” Coyle said.
Shares of IRTC were up 9.62% to $161.94 per share as of midday trading today.
Originally published on the evening of Feb. 25. Updated with earnings call details and boost to share price.
