Mechanical resonance imaging (MRI) equipment specialist Iradimed (IRMD +4.45%) ended the stock trading week in style on Friday. On the back of a well-received quarterly earnings report, investors traded the company’s shares up by more than 4%. That was robust enough to trounce the 0.3% gain of the bellwether S&P 500 index that trading session.
A double beat to put a cap on the week
Iradimed posted its first-quarter figures that morning, and Mr. Market clearly liked what he saw. The company’s top line expanded by 13% to just under $22 million, which exceeded the average analyst estimate of $20.8 million.
Image source: Getty Images.
In terms of profitability, Iradimed’s net income under generally accepted accounting principles (GAAP) also increased, by 24% to over $5.8 million. On a per-share, non-GAAP (adjusted) basis, profitability advanced by 17% to $0.49. Again, this was a beat for Iradimed, as pundits tracking the specialty medical devices stock were collectively estimating $0.46.
The bulk of Iradimed’s revenue comes from sales of devices used in MRI systems. This part of the company’s business generated revenue of almost $15.4 million during the quarter, a 19% increase. Of this, the most successful sub-category was MRI-compatible intravenous (IV) infusion pump devices.

Today’s Change
(4.45%) $3.71
Current Price
$87.15
Key Data Points
Market Cap
$1.1B
Day’s Range
$76.95 – $87.78
52wk Range
$50.05 – $107.90
Volume
347K
Avg Vol
85K
Gross Margin
76.75%
Dividend Yield
0.85%
Pumped up for the future
In its earnings release, Iradimed waxed bullish about the release of its latest IV pump system, the 3870. The product’s commercial launch occurred during the quarter, and the company quoted CEO Roger Susi as saying, “Customer reception has been very encouraging, with tremendous interest and strong early order activity.”
Management also maintained its revenue guidance of $91 million to $96 million, and its bottom-line forecast of $2.06 to $2.21 for adjusted earnings per share.
As the American and indeed global population ages, the world will require more medical care. Consequently, well-run and profitable niche medical device makers should do increasingly well. I’d feel confident investing in Iradimed stock today.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Iradimed Corporation. The Motley Fool has a disclosure policy.
















