Please ensure Javascript is enabled for purposes of website accessibility

ShockWave Medical Boosts Guidance After Another Strong Quarter

By Brian Feroldi – Updated Aug 6, 2019 at 11:49AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cardiovascular disease specialist continues to grow its top line at a breakneck speed.

ShockWave Medical (SWAV -5.44%), a medical device company focused on treating calcified plaque, reported its second-quarter earnings on Monday.

Revenue landed at $10 million for the quarter, which represented a 339% increase over the year-ago period. Management credited the huge gains to strong demand in both the U.S. and international markets, and raised full-year revenue guidance as a result.

ShockWave Medical's second-quarter results: The raw numbers

Metric

Q2 2019

Q2 2018

Growth

Revenue

$10.0 million

$2.3 million

339%

Net income (loss)

($10.6 million)

($10.1 million)

N/A

Earnings per share

($0.38)

($5.79)

N/A

Data source: ShockWave Medical.

What happened with ShockWave this quarter?

  • U.S. revenue grew 239% to $5.2 million. The increase was credited to strong sales of its M5 IVL catheter, which is the company's above-the-knee catheter that treats peripheral artery disease (PAD).
  • International sales grew 543% to $4.8 million, mostly driven by strong growth in its C2 coronary product, which is used to treat coronary artery disease (CAD).
  • ShockWave's products are now available for sale in 33 countries.
  • Gross margin expanded 1,100 basis points to 59%. The gains were due to increased efficiencies and fixed cost absorption.
  • Operating expenses ballooned 51% to $17.1 million, driven mostly by commercial expansion and increased spending on clinical programs.
  • Net loss was $10.6 million, or $0.38 per share. Wall Street expected a net loss of $0.53 per share.
  • Cash balance at quarter-end was $125.1 million.
Doctors with scrubs on performing surgery

Image source: Getty Images.

What management had to say

CEO Doug Godshall was pleased with the company's second-quarter performance:

We continue to be encouraged by our results thus far in 2019 -- both financially and operationally -- as our organization continues to improve execution on all fronts. The balanced mix of our products, both geographically and clinically, combined with the strong interest from physicians, speaks to the versatility of our IVL technology and its ability to help patients with complex calcified cardiovascular disease. Our progress operationally, clinically and financially is encouraging and gives us confidence to continue expanding and enhancing our team.

Check out the latest earnings call transcript for ShockWave.

Looking forward

The strong quarterly results enabled management to raise its revenue guidance for the full year. The company now expects sales to land between $38 million and $40 million, which represents growth of about 218% at the midpoint. That's up from its prior guidance range of $33 million to $36 million and compares favorably to the $35.4 million that Wall Street was expecting. 

ShockWave's stock rose a little bit in early morning trading following the earnings release. The jump is most likely attributable to the strong quarterly results and guidance boost.

Godshall ended his prepared remarks on the conference call by stating that the company's momentum continues to build upon itself: "We are so pleased with the progress our company and technology have made and are grateful for the exceptional support we've received from physicians around the world. These accomplishments each quarter are building upon each other to establish ShockWave as an effective solution that can help transform the way that calcified cardiovascular disease is treated."

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool recommends ShockWave Medical. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ShockWave Medical Stock Quote
ShockWave Medical
SWAV
$263.99 (-5.44%) $-15.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
338%
 
S&P 500 Returns
108%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.