Neuronetics (NASDAQ:STIM), a company that focuses on what it describes as "products that improve the quality of life for patients who suffer from psychiatric disorders," shot 39% higher on Tuesday. Investors were likely impressed by the company's potential as indicated in its first-quarter results.
Neuronetics earned $12.3 million in revenue for the quarter, 7% higher on a year-over-year basis. As is its habit of late, the healthcare company posted a net loss. However, this narrowed to just under $7.9 million ($0.31 per share) from the Q1 2020 shortfall of $12.6 million.
Both headline figures beat the average analyst estimates of $11.6 million for revenue and a bottom-line deficit of $0.33 per share.
Neuronetics specializes in transcranial magnetic stimulation (TMS) in which magnetic fields are used to stimulate nerve cells located in a part of the brain associated with mood in order to help alleviate clinical depression.
With depression apparently on the rise due to the psychological effects of the coronavirus pandemic, Neuronetics is experiencing significantly higher demand for its TMS therapy. The company reported that it has witnessed a 30% rise in patients requesting appointments.
Neuronetics has increased its guidance for full-year 2021: Revenue should be $59 million to $63 million, up from the previous $58 million to $62 million estimate. A profitability estimate wasn't provided.
Regardless, investors like the sound of a 30% demand rise; it's no wonder that the stock rose at a rate not far from that figure.