The Israel-based medical technology company, InMode, has revised its annual revenue expectations in response to slowing economic conditions and a return to historically normal seasonality in the third quarter. Instead of its previous estimate of $530 million to $540 million, InMode now projects revenue of $500 million to $510 million for the year 2023.
Third-quarter sales are also predicted to be lower than initially anticipated. When the market opens on Nov. 2, InMode expects to report sales between $122.8 million and $123 million, falling short of the FactSet analysts’ projection of $136.9 million.
Adjusted earnings, which exclude one-time items, are forecasted to be 59 cents to 60 cents per share. This figure misses the analyst estimates of 66 cents per share provided by FactSet.
The decline in annual guidance can be attributed to slower purchase decisions made during the third quarter. InMode observes a decrease in aesthetic activity over the summer, which reflects a return to the “normal” seasonality typically experienced during the third quarter.
Additionally, the company is facing challenges in financing medical equipment. Higher interest rates, stricter leasing approval standards, and bottlenecks in loan processing contribute to these constraints.
These adjustments highlight the impact of economic conditions on InMode’s performance. However, the company remains focused on navigating these challenges and seeking opportunities for growth in the future. For more information, please refer to Dean Seal.