Please ensure Javascript is enabled for purposes of website accessibility

Why Vapotherm Stock Soared 34.2% Today

By Prosper Junior Bakiny - May 6, 2020 at 5:38PM

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 company released its fiscal first-quarter results.

What happened

Shares of Vapotherm (VAPO -4.60%), a medical technology company, jumped 34.2% on Wednesday, after it reported its fiscal first-quarter earnings. Vapotherm’s services are in high demand during the COVID-19 pandemic because of one of its devices.

So what

During the first quarter, Vapotherm’s revenue was $19.1 million, a 55.4% year-over-year increase. It came in slightly ahead of the $18.9 million analysts were expecting. Also, the company reported a net loss of $13.8 million, slightly worse than the $12.9 million it reported during the prior-year quarter.

The healthcare company recorded a $0.66 net loss per share, worse than the average analyst estimates of a $0.56 net loss. Financial results were mixed, but investors seem optimistic about the company’s Precision Flow Hi-VNI system. This respiratory support device has seen a surge in demand as a result of the rapid spread of COVID-19. 

Medical staff in masks

Image source: Getty Images.

In the press release announcing Vapotherm’s first-quarter financial results, CEO Joe Army said: "We believe the first quarter of 2020 was transformational for Vapotherm as significant customer demand in both new and existing accounts due to COVID-19 materially increased the awareness of our Hi-VNI Technology for treating patients suffering from respiratory distress. In the first quarter, we significantly exceeded expectations for revenue, continued the rapid expansion of our worldwide installed base of Precision Flow systems, and improved our gross margin by 610 basis points over the prior-year period despite strong headwinds."

Now what

During the first quarter, worldwide installed bases of Vapotherm’s Precision Flow Hi-VNI system increased by 22.7%. And given that the COVID-19 pandemic is far from over, the respiratory support device will continue to attract a lot of attention. Vapotherm’s shares are up by 146.7% year to date. 

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

Vapotherm, Inc. Stock Quote
Vapotherm, Inc.
$2.49 (-4.60%) $0.12

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

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.