Why Is Inspire (INSP) Up 7.5% Since Last Earnings Report?

Core Insights - Inspire Medical Systems reported a strong earnings performance with an EPS of 45 cents, marking a 40.6% year-over-year increase and exceeding estimates by 104.6% [2] - Revenue for the second quarter reached $217.1 million, reflecting a 10.8% year-over-year growth and surpassing estimates by 0.9% [3] Revenue Analysis - The revenue growth was primarily attributed to increased market penetration and heightened awareness among physicians and patients regarding the Inspire system [4] - U.S. revenues amounted to $207.2 million, up 10.3% year-over-year, while revenues from other countries totaled $9.9 million, representing a 23% increase [5][6] Margin and Expense Overview - Gross profit increased by 9.9% year-over-year to $182.4 million, but gross margin contracted by 74 basis points to 84% [7] - SG&A expenses rose by 20.8% to $159.5 million, while R&D expenses decreased by 9.2% to $26.2 million [7] Financial Position - As of the end of the second quarter, the company had cash and cash equivalents of $300.9 million, down from $369.2 million at the end of the first quarter [8] - Cumulative net cash used in operating activities was $4 million, compared to a net cash inflow of $8.8 million a year ago [8] Outlook and Guidance - The company has revised its revenue outlook for 2025 to a range of $900 million to $910 million, down from a previous estimate of $940 million to $955 million [10] - EPS guidance for 2025 has been lowered to between 40 cents and 50 cents, significantly down from the prior estimate of $2.20 to $2.30 [10] Estimate Trends - Consensus estimates have trended downward, with a significant shift of -118.76% noted in the past month [11] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [13] Industry Comparison - Inspire Medical is part of the Zacks Medical Info Systems industry, where competitor Omnicell reported a revenue increase of 5% year-over-year [14] - Omnicell's EPS for the same period was $0.45, down from $0.51 a year ago, and it holds a Zacks Rank 2 (Buy) with a VGM Score of A [15]