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Inari Medical, Inc. (NARI) Down 16.4% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Inari Medical, Inc. (NARI - Free Report) . Shares have lost about 16.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Inari Medical, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Inari Medical Q2 Earnings and Revenues Beat Estimates

Inari Medical reported second-quarter 2022 net loss per share of 19 cents, narrower than the Zacks Consensus Estimate of a loss of 23 cents. The company had reported earnings of 7 cents per share in the year-ago quarter.

Revenue Details

The company reported revenues of $92.7 million, which surged 46.2% from the prior-year quarter. The top line outpaced the Zacks Consensus Estimate by 5.3%. Product introductions and continued U.S. commercial expansion contributed to the improvement.

Q2 Highlights 

 The company derived almost two-thirds of its revenues from the sale of FlowTriever product lines and the rest from sales of ClotTriever product lines.

Margins

Gross profit in the reported quarter was $82.4 million, up 40.6% year over year. As a percentage of revenues, the gross margin in the quarter was 88.8%, down 360 basis points (bps).

Research and development expenses were $18.6 million, up 59.7% from the year-ago quarter. Meanwhile, selling, general and administrative expenses amounted to $73.2 million, up 70.5% on a year-over-year basis.

Operating loss totaled $9.3 million against the year-ago quarter’s operating income of $4.1 million.

Financial Position

The company exited the second quarter with cash, cash equivalents and short-term investments of $330.5 million, down from $338.7 million on a sequential basis.

Net cash used by operating activities at the end of the second quarter was $12.2 million, compared to $16.1 million net cash provided by operating activities in the prior-year quarter.

2022 Revenue Outlook

For 2022, the company reiterated its guidance for revenues in the range of $360 million to $370 million. The Zacks Consensus Estimate for the same is pegged at $362.92 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

The consensus estimate has shifted -12.12% due to these changes.

VGM Scores

At this time, Inari Medical, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Inari Medical, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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