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

Neuronetics (NASDAQ:STIM) announced its earnings results on Wednesday. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.07, FiscalAI reports. Neuronetics had a negative net margin of 14.45% and a negative return on equity of 103.12%. The business had revenue of $41.96 million for the quarter, compared to analysts’ expectations of $40.42 million.

Here are the key takeaways from Neuronetics’ conference call:

• Revenue rose 12.5% to $42 million, while gross margin expanded to 52.2%; the company also reported positive operating income, adjusted EBITDA, and operating and investing cash flow for the quarter.
• Greenbrook revenue increased 20.1%, supported by revenue-cycle improvements and growth in SPRAVATO. Management said early results from its AI-enabled claims tool improved first-month collections by a low double-digit percentage, though clinic occupancy remains uneven, ranging from about 25% to 75%.
• NeuroStar recorded its strongest quarter for system sales, with more than half of units sold through capital or lease arrangements. Management said the broader go-to-market strategy is reaching larger accounts, but expects sessions revenue to continue trending slightly lower.
• Despite positive quarterly cash flow, the company still expects full-year cash flow from operating and investing of negative $10 million to negative $12 million. Full-year revenue guidance was unchanged at $160 million to $164 million.
• Management sees potential growth opportunities from its Wave Neuroscience partnership, an EHR integration, and a planned Compass Pathways launch in 2027. These opportunities remain subject to regulatory, commercial, and reimbursement execution.

Neuronetics Stock Performance

Shares of Neuronetics stock traded down $0.04 during trading hours on Friday, hitting $2.39. 1,139,161 shares of the company were exchanged, compared to its average volume of 1,989,096. Neuronetics has a 1 year low of $0.80 and a 1 year high of $3.44. The company has a current ratio of 1.88, a quick ratio of 1.69 and a debt-to-equity ratio of 2.84. The business has a 50-day moving average of $2.47 and a 200-day moving average of $1.88. The stock has a market capitalization of $182.42 million, a price-to-earnings ratio of -7.20 and a beta of 1.36.

Insider Buying and Selling at Neuronetics

In other news, major shareholder Jorey Chernett acquired 18,000 shares of the stock in a transaction that occurred on Friday, October 30th. The shares were purchased at an average cost of $2.27 per share, for a total transaction of $40,860.00. Following the transaction, the insider directly owned 10,620,988 shares in the company, valued at approximately $24,109,642.76. This represents a 0.17% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. 8.40% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Citigroup reiterated a “market outperform” rating on shares of Neuronetics in a research note on Tuesday, July 21st. Wall Street Zen upgraded shares of Neuronetics from a “sell” rating to a “hold” rating in a research note on Sunday, July 12th. B. Riley Financial upped their target price on shares of Neuronetics from $5.00 to $6.00 and gave the company a “buy” rating in a report on Friday. Weiss Ratings reiterated a “sell (e+)” rating on shares of Neuronetics in a research note on Monday, September 14th. Finally, BTIG Research reissued a “buy” rating and set a $6.00 price target on shares of Neuronetics in a report on Thursday, September 17th. Four investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $5.00.

Neuronetics Company Profile

Neuronetics, Inc is a medical technology company that develops and commercializes noninvasive treatments for psychiatric and neurological disorders. Its primary product is NeuroStar TMS Therapy, which uses transcranial magnetic stimulation to deliver targeted magnetic pulses to areas of the brain associated with mood regulation.

NeuroStar TMS Therapy is cleared by the U.S. Food and Drug Administration for treating major depressive disorder in adults and adolescents, obsessive-compulsive disorder, and depression with anxious distress.