Please ensure Javascript is enabled for purposes of website accessibility

Why Shockwave Medical Stock Jumped Today

By Joe Tenebruso - May 11, 2021 at 8:25PM

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 health tech specialist could save lives -- and deliver impressive growth to shareholders along the way.

What happened

Shares of Shockwave Medical (SWAV 2.70%) popped 17.8% on Tuesday, following the release of the healthcare company's first-quarter results. 

So what

Shockwave Medical's revenue soared 110% year over year to $31.9 million. The gains were fueled by the U.S. launch of the medical device maker's new Shockwave C2 product, which uses sonic waves that break up calcium deposits in arteries.

CEO Doug Godshall said that following Food and Drug Administration (FDA) approval of the device in February, Shockwave Medical is "well-positioned to continue to expand our reach in helping to treat patients with severely calcified arterial disease."

A person is celebrating while looking at a rising stock chart on a laptop computer.

Investors cheered Shockwave Medical's strong first quarter revenue growth. Image source: Getty Images.

Shockwave delivered a net loss of $23.6 million, or $0.68 per share, compared to a loss of $18.8 million in the prior-year period. The company is ramping up its sales force to support the launch of its new device. Yet despite these expenses, Shockwave remains well funded, with $177.4 million in cash and investments on its balance sheet at the end of March.

Now what

Shockwave's intravascular lithotripsy (IVL) technology could be a game changer. The process is considered to be safer than other methods of treating calcium deposits in arteries. In turn, the company pegs its addressable market at $6 billion.

Looking ahead, management expects Shockwave's full-year revenue to rise as much as 202% to $205 million in 2021.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and 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
$289.13 (2.70%) $7.61

*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 08/14/2022.

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.