iRhythm Posts Smaller Than Expected Loss In Q3, But Shares Fall On Lowered Annual Guidance

iRhythm Technologies Inc IRTC posted an adjusted EPS loss of $(0.63), better than $(0.81) a year ago and the consensus of $(0.83).
The wearable heart monitor developer recorded sales growth of 21.6% to $103.87 million.
"Despite the ongoing staffing and capacity challenges, we grew registration volumes by more than 20% in the third quarter, achieving our highest daily registration volumes ever as we exited September," said iRhythm CEO and president Quentin Blackford.
"However, within the quarter, we also realized softness in returned devices – which impacted our ability to perform our services and realize revenue which muted our growth. We view this as persisting into the fourth quarter. These dynamics, fourth-quarter trends in account staffing and capacity challenges, and Zio AT utilization have led to us reducing our full-year revenue guidance."
The company held $203.5 million in cash and equivalents as of September 30, 2022.
Guidance: iRhythm previously set its annual revenue guidance of $415-$420 million. However, its updated guidance projects a reduced range of $407-$411 million, compared to the consensus of $418.72 million.
Price Action: IRTC shares closed 12.4% lower at $111.00 during after-hours trading on Tuesday.

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