On Jul 4, 2015, Zacks Investment Research raised MRI compatible IV infusion pump systems provider IRadimed Corp. IRMD to a Zacks Rank #1 (Strong Buy). Impressive first-quarter results and continuing demand for its pump system drove the upgrade.
Why the Upgrade?
IRadimed is the sole provider of non-magnetic intravenous (IV) infusion pump systems that are used during magnetic resonance imaging (MRI) procedures.
In the first quarter of 2015, IRadimed reported revenues of $7 million, which almost doubled from the year-ago quarter, driven by strong demand for its pumps. The company sold 217 IV pumps in the first quarter, as compared with 146 pumps in the year-ago quarter. Domestic revenues, as a percentage of revenues, surged to 90% from 69% on a year-over-year basis.
IRadimed continues to expand its sales force and make investments that are focused on improving production capabilities as well as quality and manufacturing efficiency. In the first quarter conference call management noted that it remains on track to resolve the issues stated in the FDA warning letter dated Sep 2014.
Moreover, IRadimed will be able to submit additional information related to the 510(K) filing with the FDA by late July. IRadimed believes that it will be able to submit 510(K) MRI compatible patient-monitoring system by the end of this year.
Based on these factors, IRadimed raised its fiscal 2015 revenue outlook to the range of $29 million to $30 million. Earnings are forecasted in the band of 57 cents to 59 cents per share. For the second quarter of 2015, IRadimed expects revenues in the range of $7.1 million to $7.2 million. Earnings are likely to come in between 14 cents and 15 cents per share.
The Zacks Consensus Estimate for fiscal 2015 is currently pegged at 50 cents per share, which has remained steady over the last 30 days. Over the same time frame, the 2016 Zacks Consensus Estimate has been revised up by 3 cents to stand at the present 63 cents per share. We believe that the revised estimates reflect significant top-line growth backed by an increase in the installed base.
Other Stocks to Consider
One may also consider other favorably-ranked stocks like Masimo MASI, China Biologic CBPO and INSYS Therapeutics INSY, all of which carry the same Zacks Rank as IRadimed.
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