Shockwave Medical easily beat first-quarter expectations, pushing SWAV stock closer to a breakout on Tuesday.
On today's stock market, SWAV stock jumped 3.8% to close at 285.30. Shares are eyeing a buy point at 300.10 out of a cup-with-handle, according to MarketSmith.com. The move Tuesday follows a 4.6% dive on Monday after the rumored takeover talks with Boston Scientific reportedly broke down, according to StreetInsider.
During the March quarter, Shockwave earned $1.03 per share on $161.1 million in sales. Earnings more than doubled year over year, rocketing 164%, and soundly beating forecasts for 79 cents, according to FactSet. Sales advanced 72% and topped expectations for $147.3 million.
SWAV Stock: Bullish Growth Expected
SWAV stock has been on a run in 2023 and surged in late April on a report Boston Scientific could buy the company. The potential deal could bolster Boston Scientific's cardiovascular portfolio.
Shockwave's technology uses electrical impulses to "crack" hardened calcium in the arteries. The process called intravascular lithotripsy is an alternative to atherectomy, which uses a small drill to remove calcifications.
The two companies couldn't agree on a price, an insider reportedly told StreetInsider. Boston Scientific offered $275 per share of SWAV stock. But Shockwave shares hit a recent high at 300 in late April.
Representatives of the two companies declined to comment to Investor's Business Daily.
Needham analyst Mike Matson noted in a recent report that the intravascular lithotripsy market is worth about $8.5 billion. This implies just 6% of the market was penetrated last year.
For the year, Shockwave predicted $700 million to $720 million in sales, up 43%-47%. That's up from the company's earlier outlook for $660 million to $680 million. SWAV stock analysts call for earnings of $3.72 per share and $671.5 million in revenue.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
