iRhythm's Q4 Earnings Beat Expectations, Analysts Remain Bullish On Upcoming Catalysts

iRhythm Technologies Inc IRTC reported Q4 FY22 revenue of $112.6 million, up 37.7% Y/Y beating the consensus of $110.26 million.
The company reported a net loss of $(20.2) million, a $12.3 million improvement compared to the fourth quarter of 2021.
It reported an adjusted EBITDA of $1.1 million, an $18.4 million improvement compared to Q4 FY21.
iRhythm Technologies sees FY23 revenues of $475-$485 million compared to the consensus of $485.6 million.
Adjusted EBITDA margin is expected to be approximately (0.5)% to 0.5% of revenues.
William Blair keeps Outperform on the stock, noting the catalysts like the launch of its next-gen Zio monitor, Zio watch, international expansion, clinical data around asymptomatic patients, and indication expansion on the horizon.
The analyst says the long-term remains intact and sees the risk/reward at this valuation as quite favorable.
Needham writes that 2023 revenue guidance was below consensus, while adjusted EBITDA guidance of breakeven at the mid-point was above consensus.
iRhythm's upcoming data presentation at ACC could have clinical and competitive implications.
Given IRTC's improving fundamentals with multiple upcoming catalysts, Needham reiterates the Buy rating but cuts the price target from $140 to $133.
Price Action: IRTC shares are up 2.34% at $110.21 on the last check Friday.

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