On Wednesday, Canaccord Genuity maintained a Hold rating on InMode Ltd . (NASDAQ:INMD) with a steady price target of $17.00. The medical technology company, which maintains an impressive 81.64% gross margin and trades at a P/E of 8.65, saw its stock price adjust following the preannouncement of its fourth-quarter results for the fiscal year 2024 (Q4/24). InMode reported preliminary full-year 2024 revenues of $394.0 million to $394.5 million, which fell short of its previously issued guidance range of $410.0 million to $420.0 million.
This indicates that the fourth-quarter revenues are expected to be between $97.0 million and $97.5 million, compared to the initial guidance of $113 million to $123 million and Canaccord Genuity's own expectation of $112.6 million. According to InvestingPro data, six analysts have recently revised their earnings expectations downward for the upcoming period.
In addition, InMode provided its fiscal year 2025 (FY25) revenue outlook, projecting a range of $395 million to $405 million. This forecast suggests a modest growth of 0.1% to 2.8% for FY25. Despite the conservative outlook, InvestingPro's Fair Value analysis suggests the stock is currently undervalued, with the company maintaining strong financial health scores.Investors seeking deeper insights can access the comprehensive Pro Research Report for INMD, along with 12 additional ProTips and extensive financial metrics available on InvestingPro.
Canaccord Genuity has adjusted its own revenue estimate for FY25 to fall below InMode's guidance range. This conservative stance is taken in light of InMode's pattern of revising its guidance downward throughout 2024 and the ongoing macroeconomic challenges that the company faces.
The analyst from Canaccord Genuity cited these revisions and the broader economic context as reasons for maintaining the Hold rating and the $17 price target. The commentary from the firm reflects a cautious approach to InMode's stock, factoring in the company's recent performance and the uncertain market conditions looking forward. Canaccord's position remains unchanged as they continue to watch how InMode navigates the fiscal challenges ahead, with the next earnings report scheduled for February 6, 2025.
In other recent news, InMode Ltd. has revised its 2024 guidance due to operational challenges and a decrease in sales. The company reported a total revenue of $130.2 million, down from previous forecasts, and adjusted its full-year revenue outlook due to a challenging economic environment. Despite these difficulties, InMode posted a gross margin of 82% and an increase in GAAP diluted earnings per share to $0.65. The company also announced management changes to better align with market conditions and ensure employee safety in Israel.
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