Shockwave Med Obliterates Earnings Views With 991% Growth

Shockwave Medical (SWAV) tripled Wall Street’s fourth-quarter profitability expectations, leading SWAV stock to surge on Friday.


The company makes lithotripsy tools to “crack” hardened calcium in the arteries. During the December quarter, Shockwave earned $3.71 per share, blowing away projections for $1.01, according to FactSet. Sales also beat views at $144 million, meeting the high end of Shockwave’s own guidance.

On a year-over-year basis, earnings skyrocketed 991%. Sales also launched 71% higher.

In midday trades on the stock market today, SWAV stock popped 4.2% near 199.30. Earlier, shares rose as much as 14.8% to touch a high point at 219.49.

SWAV Stock: Reducing Risk Of Heart Complications

Shockwave’s technology takes out calcification in the arteries. Left untreated, and they could lead to heart attack, stroke or death. Shockwave hopes its technology will eventually replace atherectomy, a method of using a small drill to remove the small built-up plaque.

For the year, Shockwave guided to $660 million to $680 million in sales, an increase of 35%-39%. SWAV stock analysts currently forecast $671.9 million in sales this year and $3.98 earnings per share. Earnings would drop more than 30%.

There could be some upside to that guide, however. Shockwave is currently working to acquire Neovasc for $100 million. Neovasc, which doesn’t trade in the U.S., makes a platform to treat refractory angina. This chronic condition causes chest pain. Shockwave estimates the market is worth $5 billion.

SWAV stock retook its 50-day moving average on the earnings announcement, shows. But shares remain below their 200-day line.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.


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