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Why InMode Stock Surged Today

By Joe Tenebruso – Updated Oct 13, 2020 at 3:28PM

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The cosmetic device maker's sales rebounded sharply in the third quarter.

What happened 

Shares of InMode (INMD 0.28%) jumped on Tuesday after the medical technology specialist released preliminary third-quarter results. As of 2:50 p.m. EDT, InMode's stock was up more than 8% after rising as much as 14.5% earlier in the day.

So what 

InMode expects to deliver record revenue of $59.2 million to $59.5 million, which would represent growth of roughly 48% from the year-ago period. Analysts had anticipated revenue of only $38.2 million. 

The cosmetic device maker also said that its adjusted earnings per share should come in between $0.60 and $0.62. That, too, was well above Wall Street's estimates, which called for adjusted EPS of $0.31. 

A person is pointing to a chart that rises, then falls, then rises again.

Investors cheered InMode's third-quarter update. Image source: Getty Images.

InMode's preliminary Q3 results are a marked contrast to its second-quarter report. Its Q2 revenue plunged 21% year over year, to $30.8 million, as coronavirus-related shutdowns and elective surgery postponements took a heavy toll.

Now what

Better still, InMode boosted its full-year revenue forecast to a range of $192 million to $195 million, up from a prior projection of $156 million to $160 million. A faster-than-expected recovery in elective procedures and the rising popularity of InMode's radio-frequency devices among surgeons are helping to fuel its growth.

"InMode has proven once again that its two main electro-surgical proprietary and unique technologies; minimally invasive and hands-free, are becoming the gold standard of the minimally invasive surgical procedures for a variety of medical indications," CEO Moshe Mizrahy said in a press release. "We expect the underlying interest in our differentiated product suite will continue to drive sales into the fourth quarter of 2020."

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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