Electromed, Inc. (ELMD) reported mixed fiscal Q4 results, topping earnings estimates but falling a little short of revenue expectations. COVID-19-induced disruptions to patient visits and sales representative access across the industry impacted the results during the quarter.
Shares of the manufacturer and seller of medical equipment, including the SmartVest Airway Clearance System, which provides airway clearance therapy to patients with compromised pulmonary function, have gained 24% year-to-date. (See Electromed stock charts on TipRanks)
Adjusted earnings of $0.04 per were a cent ahead of analysts’ expectations of $0.03 per share. The company reported earnings of $0.15 per share in the prior-year period.
Markedly, revenues jumped 37.7% year-over-year to $9.5 million but fell slightly short of consensus estimates of $9.59 million. The increase in revenues reflected a 33.6% growth in home-care revenue and a surge in institutional sales, which increased 90.6%.
Electromed Provides Update on Fiscal 2022 Strategic Priorities
For Fiscal 2022, the company plans to make incremental investments towards sales and marketing and perform additional studies related to the benefits of SmartVest.
Markedly, management is confident of gaining market share, with stronger penetration of SmartVest in the fastest growing segments of adult pulmonology/bronchiectasis.
Furthermore, the company is on track to complete the final phases of development of the next generation SmartVest product, slated to launch in the first half of Fiscal 2023, subject to FDA approvals.
Looking forward to Fiscal 2022, Electromed CEO Kathleen Skarvan commented, “We enter fiscal 2022 encouraged by the ongoing nationwide deployment of vaccinations and the extension of the provisional waiver from the Centers for Medicare & Medicaid Services.”
She further added, “Our strong fiscal 2021 results, as well as the large and underpenetrated bronchiectasis market, reinforce our confidence in the strategic growth investments we are making and our ability to continue generating sustainable profitable growth, improved operating margins and enhanced shareholder value.”
Colliers Securities analyst Kyle Bauser reiterated a Buy rating on the stock with a price target of $21 (73% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys. The average Electromed price target of $18 implies 48.3% upside potential from current levels.
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