What happened
Shares of Axonics (AXNX 0.23%) were up more than 10% at noon on Friday after the medical device company released second-quarter earnings. The healthcare stock is down more than 6% so far this year.
So what
Axonics focuses on medical products to treat bladder and bowel dysfunction. The company, after the markets closed on Thursday, reported second-quarter revenue of $92.9 million, up 35%, year over year. Most of the revenue, $74.2 million, was from the company's implantable sacral neuromodulation products, which stimulate nerves above the tailbone to treat fecal incontinence and overactive bladders. Bulkamid, an urethral bulking hydrogel used by women to treat stress urinary incontinence, was responsible for the rest of the revenue.
Axonics also said it had a quarterly net loss of $7.3 million compared to a net loss of $21.4 million in the second quarter of 2022.
The company cited higher manufacturing yields, less outsourcing of processes and a tight hold on supply chain for improving its gross margin to more than 75% in the quarter.
Axonics also raised annual revenue guidance to $358 million, up 31%. The company said it expects annual sacral neuromodulation revenue of $285.5 million, up 29% and annual Bulkamid revenue of $72.5 million, an increase of 40%.
Now what
The improved second-quarter report led three analysts to boost their targets for the stock on Friday. Needham & Company boosted its price target for Axonics from $73 to $76, Robert W. Baird boosted his target for the company from $69 to $70, and KeyCorp boosted its target for Axonics from $71 to $73.
The company's prospects are also looking up after it prevailed on July 10 against Medtronic in an appeal of a patent infringement suit that initially went against Axonics regarding its sacral modulation devices.
