Why ShockWave Medical Stock is Soaring Today
Shares of Medical ShockWave (NASDAQ: SWAV) are trading higher on Tuesday after the company released preliminary earnings results for the first quarter. ShockWave Medical also provided an update on the rollout of its C2 system, which was approved by the US Food and Drug Administration (FDA) in February. Shares of ShockWave Medical rose 15.5% at 12:50 p.m. EDT, after rising 18.7% earlier in the day.
ShockWave Medical is best known for its intravascular lithotripsy (IVL) technology to treat atherosclerotic cardiovascular disease (the buildup of plaque in the arteries). Lithotripsy is a medical procedure that uses shock waves to break up kidney stones. Last month, the company’s C2 Coronary Intravascular Lithotripsy Catheter obtained approval from healthcare industry regulators in the United States. This device helps open calcified arteries to allow stent implantation.
Today, ShockWave Medical announced that the launch of this device in the US market is proceeding as planned. For example, the company said more than 120 customers in the United States purchased an average of six units of the C2 System Launch Kit, among other milestones. ShockWave Medical also provided high-level estimates for the first quarter. The company expects revenue of between $31 million and $32 million, which would represent a 104% to 111% increase from the prior year quarter. Meanwhile, analysts expect the company’s revenue to be $24.9 million for the quarter.
ShockWave Medical could see even better days ahead. The company barely scratches the surface of its addressable market, which it estimates at over $6 billion. With solid opportunities ahead, ShockWave Medical is a health care stock deserves serious consideration.
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