Neuronetics (NASDAQ:STIM) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Neuronetics (NASDAQ:STIM) announced its quarterly earnings results on Tuesday. The company reported ($0.05) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.07, FiscalAI reports. The company had revenue of $41.57 million during the quarter, compared to the consensus estimate of $40.17 million. Neuronetics had a negative net margin of 19.62% and a negative return on equity of 121.03%.

Here are the key takeaways from Neuronetics’ conference call:

• Revenue rose 9.1% to $41.6 million, while adjusted EBITDA improved to positive $0.3 million from negative $5.6 million a year ago. Net loss narrowed to $3.4 million, and cash used in operations and investing fell to $1.4 million.
• Greenbrook revenue increased 16.8% to $26.9 million, supported by provider growth, improved reimbursement and revenue-cycle management. Management said cash collections grew faster than revenue and identified further upside from increasing clinic occupancy, with roughly 40% of capacity still unused.
• Neuronetics is broadening NeuroStar’s commercial model to include outright purchases, lease financing and à la carte support alongside its traditional treatment-session model. Capital sales grew double digits, but session revenue declined double digits; management expects some near-term revenue volatility as customers shift among models.
• The company raised its full-year gross-margin outlook to 48%–50% and lowered operating-expense guidance to $95 million–$100 million, while narrowing revenue guidance to $160 million–$164 million. It expects cash flow from operations and investing of negative $10.5 million to negative $14.5 million for the year and limited net cash use in the second half.
• Management continues preparing Greenbrook for potential psychedelic treatment launches, particularly Compass Pathways’ COMP360, leveraging existing SPRAVATO infrastructure, trained staff and available clinic capacity. The company views its combination of TMS, SPRAVATO and future therapies as a potential differentiator in interventional psychiatry.

Neuronetics Trading Up 0.6%

Shares of STIM stock opened at $3.21 on Thursday. The company has a current ratio of 1.67, a quick ratio of 1.50 and a debt-to-equity ratio of 3.59. Neuronetics has a 12-month low of $0.80 and a 12-month high of $3.98. The stock has a market capitalization of $223.38 million, a P/E ratio of -7.30 and a beta of 1.03. The firm’s 50 day moving average is $1.68 and its 200 day moving average is $1.57.

Analyst Upgrades and Downgrades

STIM has been the subject of a number of research analyst reports. Citigroup reissued a “market outperform” rating on shares of Neuronetics in a report on Tuesday, July 21st. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neuronetics in a research report on Thursday, June 18th. Wall Street Zen raised Neuronetics from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. Finally, BTIG Research lifted their price objective on Neuronetics from $5.00 to $6.00 and gave the stock a “buy” rating in a report on Tuesday. Three investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $4.50.

Insiders Place Their Bets

In other news, major shareholder Jorey Chernett purchased 100,000 shares of the stock in a transaction dated Tuesday, May 19th. The shares were purchased at an average cost of $1.17 per share, with a total value of $117,000.00. Following the acquisition, the insider directly owned 10,553,988 shares of the company’s stock, valued at $12,348,165.96. This represents a 0.96% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 8.40% of the company’s stock.

Institutional Trading of Neuronetics

Several large investors have recently modified their holdings of the company. UBS Group AG boosted its holdings in shares of Neuronetics by 580.7% in the third quarter. UBS Group AG now owns 2,164,831 shares of the company’s stock worth $5,910,000 after buying an additional 1,846,801 shares during the last quarter. Lane Generational LLC bought a new stake in Neuronetics during the fourth quarter valued at approximately $2,353,000. Goldman Sachs Group Inc. increased its holdings in Neuronetics by 2,993.3% during the first quarter. Goldman Sachs Group Inc. now owns 630,393 shares of the company’s stock valued at $2,320,000 after buying an additional 610,014 shares during the last quarter. Geode Capital Management LLC increased its holdings in Neuronetics by 172.3% during the second quarter. Geode Capital Management LLC now owns 879,045 shares of the company’s stock valued at $3,068,000 after buying an additional 556,268 shares during the last quarter. Finally, Wexford Capital LP raised its position in Neuronetics by 83.1% in the third quarter. Wexford Capital LP now owns 1,177,225 shares of the company’s stock worth $3,214,000 after acquiring an additional 534,155 shares during the period. Institutional investors own 53.59% of the company’s stock.

Neuronetics Company Profile

Neuronetics, Inc is a commercial‐stage medical technology company that develops and markets non-invasive neuromodulation therapies for psychiatric and neurological disorders. The company’s flagship product, the NeuroStar Advanced Therapy System, uses repetitive transcranial magnetic stimulation (rTMS) to deliver targeted magnetic pulses to areas of the brain implicated in major depressive disorder (MDD). NeuroStar Advanced Therapy has received U.S. Food and Drug Administration clearance for the treatment of adults with treatment-resistant depression and is supported by a growing body of clinical evidence demonstrating its safety and efficacy.

Founded in 2003 and headquartered in Malvern, Pennsylvania, Neuronetics focuses on advancing clinical care through innovation in neurostimulation.