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SAN FRANCISCO - iRhythm Technologies, Inc. (NASDAQ:IRTC), a digital healthcare solutions company with a market capitalization of $3.3 billion and impressive revenue growth of 20% in the last twelve months, has released findings from two large-scale studies presented at the American College of Cardiology 2025 Scientific Sessions, which suggest limitations in the current use of short-term Holter monitoring for detecting heart arrhythmias. According to InvestingPro data, the company maintains a strong gross profit margin of 69%, highlighting its operational efficiency in the medical device market. The studies, involving over 1.1 million patients using iRhythm’s Zio long-term continuous monitoring (LTCM) ECG devices, indicate that many actionable arrhythmias go undetected with standard 24-48 hour Holter monitoring.
The first study highlighted that 64% of patients with daily symptoms who were diagnosed with actionable arrhythmias were not detected within the first 48 hours, suggesting that short-term monitoring could miss critical diagnoses. The second study found that symptom-rhythm correlation (SRC) was less than 20% for most arrhythmias, indicating that patient-reported symptoms are not reliable indicators of arrhythmic events.
These findings are particularly significant as they challenge the assumption that frequent symptoms warrant short-duration monitoring. Dr. Mintu Turakhia, iRhythm’s Chief Medical and Scientific Officer, emphasized the studies’ implications for clinical practice and payer policy, advocating for the benefits of extended monitoring up to 14 days provided by Zio LTCM.
Arrhythmias affect up to 5% of the general population, potentially leading to serious health risks if left untreated. The financial impact of undiagnosed arrhythmias is also considerable, with undiagnosed atrial fibrillation alone costing the U.S. healthcare system an estimated $3 billion annually. While iRhythm’s current stock price suggests it’s trading near its Fair Value according to InvestingPro analysis, analysts see potential upside with price targets reaching as high as $152. Discover more insights and detailed financial analysis in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The research presented adds to iRhythm’s extensive clinical evidence base supporting the use of LTCM for improved patient outcomes. The company’s Zio monitor, a prescription-only device, offers continuous ECG data recording for up to 14 days and has demonstrated higher diagnostic yield and lower repeat testing rates compared to other monitoring methods.
As healthcare systems move towards value-based care models, these new insights advocate for a reevaluation of current monitoring practices and policies to enhance patient care and potentially reduce healthcare costs. InvestingPro analysis reveals the company maintains a healthy financial position with liquid assets exceeding short-term obligations, though it’s worth noting that analysts don’t expect profitability this year. Get access to 8 additional ProTips and comprehensive financial metrics by subscribing to InvestingPro.
The information in this article is based on a press release statement from iRhythm Technologies, Inc.
In other recent news, iRhythm Technologies reported robust fourth-quarter earnings, with revenue reaching $164.3 million, surpassing the consensus estimate of $157.12 million and marking a 24% increase from the previous year. The company also achieved a notable earnings per share of $0.01, significantly better than the anticipated $0.35 loss per share. Looking ahead, iRhythm forecasts 2025 revenue between $675-685 million, aligning closely with analyst expectations. Truist Securities and JPMorgan both raised their price targets for iRhythm to $145, maintaining their Buy and Overweight ratings, respectively, following the company’s strong performance and positive outlook.
Needham also increased its price target to $138, citing strong U.S. sales volumes and promising international expansion efforts. Analysts highlighted iRhythm’s conservative guidance, suggesting potential for the company to exceed expectations. The company is on track with regulatory remediation and plans to submit its MCT device to the FDA by the third quarter of 2025. iRhythm’s international growth is also noteworthy, with early-stage launches in Europe and plans to enter the Japanese market in mid-2025.
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