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

Neuronetics (NASDAQ:STIM) issued its quarterly earnings results on Wednesday. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.09) by $0.07, FiscalAI reports. Neuronetics had a negative net margin of 19.62% and a negative return on equity of 125.11%. The business had revenue of $41.96 million for the quarter, compared to the consensus estimate 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 Trading Up 25.3%

Shares of Neuronetics stock traded up $0.57 on Wednesday, hitting $2.83. 3,478,042 shares of the company’s stock traded hands, compared to its average volume of 1,986,456. The firm’s 50-day moving average price is $2.49 and its two-hundred day moving average price is $1.87. The company has a debt-to-equity ratio of 2.84, a current ratio of 1.88 and a quick ratio of 1.69. The stock has a market capitalization of $215.80 million, a PE ratio of -6.44 and a beta of 1.36. Neuronetics has a one year low of $0.80 and a one year high of $3.44.

Wall Street Analyst Weigh In

STIM has been the subject of a number of research analyst reports. Citigroup reaffirmed a “market outperform” rating on shares of Neuronetics in a research note on Tuesday, July 21st. BTIG Research reissued a “buy” rating and issued a $6.00 price target on shares of Neuronetics in a report on Thursday, September 17th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neuronetics in a report on Monday, September 14th. Wall Street Zen upgraded Neuronetics from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. Finally, B. Riley Financial assumed coverage on Neuronetics in a research report on Friday, September 11th. They issued a “buy” rating on the stock. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $4.67.

Insider Transactions at Neuronetics

In related news, major shareholder Jorey Chernett bought 18,000 shares of the firm’s stock in a transaction dated Friday, October 30th. The stock was bought at an average cost of $2.27 per share, for a total transaction of $40,860.00. Following the transaction, the insider owned 10,620,988 shares of the company’s stock, valued at $24,109,642.76. This represents a 0.17% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 8.40% of the company’s stock.

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.