Gold prices slip slightly after recent gains; U.S. data eyed
On Friday, JPMorgan analyst Robbie Marcus increased the price target on iRhythm Technologies (NASDAQ:IRTC) shares to $145 from $97, while keeping an Overweight rating on the stock. The cardiac monitoring technology company, currently valued at $3.5 billion, has demonstrated strong financial health according to InvestingPro analysis, maintaining robust liquidity with a current ratio of 5.82. Marcus highlighted iRhythm’s fourth-quarter performance, which surpassed Wall Street’s expectations, even after accounting for the company’s earlier preannouncement. iRhythm Technologies reported sales of $164.3 million, marking a 24% increase and topping the pre-conference forecast of $157 million. This positive outcome followed a preannouncement indicating sales would exceed $160 million. The company’s impressive performance aligns with its broader growth trajectory, showing a 20.13% revenue increase over the last twelve months. InvestingPro subscribers can access 8 additional key insights about IRTC’s growth potential.
The company also achieved its first quarter of adjusted earnings parity, with a slight improvement in gross margin by 20 basis points and a reduction in operating expenses by 250 basis points. This resulted in a net income of $0.2 million for the quarter, equating to one cent of earnings per share, compared to the Street’s expectation of a $0.25 loss per share.
iRhythm’s guidance for the top line was reaffirmed, projecting revenues between $675 and $685 million, which represents a growth of 15-17%. The adjusted EBITDA guidance was set at 7-8% of sales, aligning closely with Street expectations despite preliminary concerns about margin pressures from tariffs.
Marcus expressed continued confidence in iRhythm’s prospects leading into 2025, citing the strong momentum exiting the fourth quarter and a conservative outlook that could lead to further quarters of outperformance and upward revisions. This optimism is reflected in the stock’s remarkable 59.43% price return over the past six months, though InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors can access the comprehensive Pro Research Report for deeper insights into IRTC’s valuation and growth prospects.
In other recent news, iRhythm Technologies reported a significant 24% year-over-year increase in fourth-quarter revenue, totaling $164.3 million, surpassing the consensus estimate of $157.1 million. This strong performance led BTIG analysts to raise their price target to $135, maintaining a Buy rating, while Citi analysts increased their target to $130, also maintaining a Buy rating. Needham analysts followed suit, raising their price target to $112 from $96, highlighting the company’s robust sales strength and future growth potential.
The company’s improved gross margins and effective expense management resulted in an adjusted EBITDA of $19.3 million, exceeding consensus estimates. iRhythm has set its 2025 revenue guidance between $675 million and $685 million, aligning with consensus expectations. Additionally, Oppenheimer maintained an Outperform rating with a $120 price target, emphasizing potential market share gains following a competitor’s product recall by the FDA.
In corporate governance news, iRhythm announced that board member Mojdeh Poul would not seek re-election, as she transitions to her new role as CEO of Integra LifeSciences. The company remains focused on resolving regulatory challenges and advancing its product offerings, with plans to address an FDA warning letter by mid-2025. These developments reflect iRhythm’s strategic positioning and ongoing efforts to enhance its market presence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.