What happened
Shares of AirSculpt Technologies (AIRS -0.35%) were soaring 19.9% higher as of 11:21 a.m. ET on Friday. The big gain came after the company announced its second-quarter results earlier in the day.
AirSculpt reported Q2 revenue of $49.7 million, up 42% year over year. This result easily beat the consensus estimate of $44.4 million.
The company posted earnings of $583,000, or $0.01 per share, in the second quarter -- lower than earnings of $10 million in the prior-year period. However, the average estimate of analysts surveyed by Refinitiv was for no earnings.
In addition, AirSculpt's board of directors approved a special cash dividend of $0.41 per share. This dividend will be paid on Sept. 14, 2022, to shareholders of record at the close of business on Aug. 26, 2022.
So what
Today's gain adds to AirSculpt's recent momentum. The healthcare stock was down as much as 65% year to date in early July. But shares have soared since then.
This performance reflects the underlying strength of AirSculpt's body contouring business. The company's case volume in Q2 reached 3,691. This was the highest volume in AirSculpt's history and reflected a 22.5% year-over-year increase.
But what about the earnings decline? It wasn't as bad as it looked. Q2 earnings were negatively impacted by a $7.2 million increase in equity-based stock compensation, plus around $1.9 million in costs related to AirSculpt now being listed as a public company. It conducted an initial public offering in October 2021.
Now what
AirSculpt continues to expect full-year revenue of between $175 million and $179 million. The company plans to open two additional body contouring centers in the second half of the year.