Inari Medical, Inc. (NARI) reports first-quarter loss, tops revenue estimates

Inari Medical, Inc. (NARI) reported a quarterly loss of $0.04 per share compared to the Zacks Consensus Estimate of a loss of $0.23. For comparison, a year earlier the loss was $0.06 per share. These numbers have been adjusted for one-off items.

This quarterly report represents an earnings surprise of 82.61%. A quarter ago, it was expected that this company would post a loss of $0.17 per share when it actually produced a loss of $0.11, representing a surprise of 35.29%.

Over the last four quarters, the company has topped consensus earnings per share estimates four times.

Inari Medical, Inc., which belongs to the Zacks Medical – Instruments industry, posted revenues of $116.17 million for the quarter ended March 2023, surpassing the Zacks Consensus Estimate by 5.14%. This compares to revenues of $86.75 million in the same period last year. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of current share price movements based on recently released data and future earnings expectations will depend primarily on management’s commentary following the earnings conference call.

Year to date, shares of Inari Medical, Inc. have lost about 5.6%, while the S&P 500 has gained 7.3%.

What’s next for Inari Medical, Inc.?

While Inari Medical, Inc. has underperformed the market this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings report, the estimate revision trend for Inari Medical, Inc. is mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the stock is expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the coming days. The current consensus EPS estimate is -$0.18 on $114.96M in revenues for the coming quarter and -$0.51 on $476.07M in revenues for the current fiscal year.

Investors should be aware that the outlook for the industry can also have a significant impact on the stock price. In terms of the Zacks Industry Rank, Medical – Instruments is currently in the top 46% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One more company in the same industry, Steris (STE), is yet to report results for the quarter ending March 2023. The results are expected to be released on May 10.

The medical device maker is expected to report quarterly earnings of $2.15 per share in its upcoming report, which would represent a year-over-year change of 5.4%. The consensus earnings per share estimate for the quarter has been revised down 0.5% over the past 30 days to the current level.

Steris revenue is expected to be $1.27 billion, up 5.2% from the prior-year quarter.

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