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InMode (INMD) Stock Rises 18% on Record Revenue Expectations

  • InMode (INMD) announced today that it expects to release record second-quarter revenue results.
  • The company also increased its full-year revenue guidance range.
  • INMD stock is now up 18% on the news.
An image of medical icons in a web; DNA, bandage, eye, lungs, heart, syringe
Source: ArtemisDiana/Shutterstock

It’s not every day that InMode (NASDAQ:INMD) stock trends in the financial news. However, today’s a special day for the medical device company. As INMD stock shoots higher on heavy trading volume, investors are clearly pleased with the company’s new record revenue expectations for the second quarter of 2022.

U.S. traders might not be familiar with Israel-based InMode. At a market capitalization exceeding $2 billion, the company is bigger than you might expect. InMode develops and sells medical devices that harness radio frequency technology. These devices benefit surgeons and patients in plastic surgery, dermatology and more.

By all accounts, InMode is doing well in its field. The company’s preliminary Q2 results suggest a non-GAAP gross margin “in the range of 83% to 85%.” That’s fairly high.

Furthermore, InMode expects to set a company record with revenue in the range of $113 million to $113.3 million. Plus, InMode raised its full-year revenue guidance range to between $425 million and $435 million. Before, the range had been between $415 million and $425 million.

What’s Happening With INMD Stock?

Suffice it to say, long-side INMD stock traders are ecstatic today. As of this writing, shares are up 18%, having broken the $27 level.

This is surely a relief to the company’s downtrodden investors. They still have a lot of catching up to do, however. At $99.27, the stock’s 52-week high is lofty.

If there’s a silver lining here — besides InMode’s highly optimistic forward guidance — it’s that INMD stock is trading at a reasonable valuation multiple now. Specifically, its trailing 12-month price-earnings (P/E) ratio is currently 12.5 times.

That number might be adjusted upward soon if the buying pressure persists, though. CEO Moshe Mizrahy certainly seems confident in InMode’s prospects:

“Our record results in the second quarter of 2022 are an indication of the strong demand for our proprietary technologies in the aesthetic surgical field.”

Just maybe, this company is on the cusp of a welcome summertime turnaround.

On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/inmode-inmd-stock-rises-18-on-record-revenue-expectations/.

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