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

Neuronetics (NASDAQ:STIM) announced its quarterly earnings data 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. Neuronetics had a negative return on equity of 139.83% and a negative net margin of 24.48%.The business had revenue of $41.57 million during the quarter, compared to analyst estimates of $40.17 million.

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 Price Performance

Shares of NASDAQ:STIM opened at $3.23 on Tuesday. The company’s fifty day moving average is $1.61 and its two-hundred day moving average is $1.55. The company has a market cap of $224.78 million, a P/E ratio of -5.98 and a beta of 1.03. Neuronetics has a 12-month low of $0.80 and a 12-month high of $4.00. The company has a quick ratio of 1.50, a current ratio of 1.67 and a debt-to-equity ratio of 3.59.

Insider Activity at Neuronetics

In other Neuronetics news, major shareholder Jorey Chernett bought 100,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average price of $1.17 per share, with a total value of $117,000.00. Following the completion of the transaction, the insider directly owned 10,553,988 shares in the company, valued at approximately $12,348,165.96. This represents a 0.96% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 8.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Neuronetics

Several hedge funds have recently bought and sold shares of STIM. Raymond James Financial Inc. purchased a new position in Neuronetics during the 2nd quarter valued at about $37,000. Sherbrooke Park Advisers LLC acquired a new stake in shares of Neuronetics during the third quarter worth approximately $33,000. Caption Management LLC acquired a new stake in shares of Neuronetics during the third quarter worth approximately $38,000. Larson Financial Group LLC boosted its holdings in shares of Neuronetics by 157.2% during the third quarter. Larson Financial Group LLC now owns 17,813 shares of the company’s stock worth $49,000 after purchasing an additional 10,886 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in Neuronetics during the second quarter valued at approximately $69,000. 53.59% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on STIM shares. Citigroup reiterated a “market outperform” rating on shares of Neuronetics in a research report on Tuesday, July 21st. BTIG Research assumed coverage on shares of Neuronetics in a research report on Monday, July 20th. They set a “buy” rating and a $5.00 price objective for the company. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neuronetics in a research note on Thursday, June 18th. Finally, Wall Street Zen upgraded shares of Neuronetics from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. Three equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $4.00.

About Neuronetics

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.