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Investing.com -- Shares of Revenio surged by 11% as the company reported a 3% increase in Q1 sales compared to the consensus, attributing growth to imaging and tonometers across all regions.
The earnings before interest and taxes (EBIT) also rose by 6.5% against consensus, bolstered by an unexpectedly high gross margin, which outperformed expectations by 2 percentage points. However, earnings per share (EPS) fell short by 7.6% due to higher financial expenses than anticipated.
The Finnish health tech company’s first-quarter performance was partly driven by "a few larger one-off orders in both Europe and APAC," according to the company’s recent financial report. Despite the EPS miss, Revenio reiterated its 2025 guidance, aiming for a revenue growth of 6-15% with adjusted profitability remaining robust. Current consensus projections stand at 10% revenue growth and a 26.7% EBIT margin, up from 24.3% in the previous year.
A significant development for Revenio was the FDA approval of its iCare MAIA microperimeter in the United States, with commercial deliveries kicking off in mid-April. This approval is expected to substantially contribute to the company’s revenue growth for the rest of the year.
However, Revenio faces potential headwinds from tariffs, estimating a €0.8-1.4 million earnings impact from a 10% tariff for the remainder of the year, slightly above previous estimates. The company has proactively built up inventory in the US prior to the tariff implementation and plans to mitigate the current tariffs’ impact through various measures, including possible price increases.
RBC analysts commented on the financial results, stating, "We expect investors to be pleased by the beat in Q1, which incrementally de-risks expectations for FY2025, and the company’s commentary around the potential impact of tariffs is helpful.
However, we highlight that the guidance range for FY2025 remains wide, leaving room for moves to consensus forecasts of a few ppts through the remainder of the year. On the conference call, we anticipate questions around the contribution of the one-off orders and the outlook for growth through the remainder of the year."
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